Japan study group lays down guidelines towards legalizing ICOs
Blockchain has sets it strong foothold in several parts of the world. Countries like Japan have already made its mark into it. It is now moving ahead for legalizing initial coin offerings.
Sources say, a government-backed study group has framed basic guidelines for further adopting ICOs. The guidelines have been created for sustainable rules for financing method for ICOs. The guideline states rules for identifying the investors. Furthermore, it also has informative rules for preventing money laundering. It also covers rules like tracking the progress of projects and protection of existing equity and debt holders. It is being said that the proposals laid out will be deliberated by Japan Service Agency, later in this month. It is also being predicted that it might become a law in few years.
Kenji Harashima, a researcher at Mizuho Research Institute quoted, “ICOs are groundbreaking technology, so if we can implement good principles and rules, they have the potential to become a new way to raise funding.”
The study group includes several members. It includes general adviser Takuya Hirai, head of the nation’s largest bitcoin exchange bitFlyer Inc Yuzo Kano and other members from Mitsubishi UFJ Financial Group Inc
The report also guides that the ICO issuers should raise funds, profits and asset distribution among the token owners, equity and debt. It also gives information about project plan tracking and changes documented further. In addition to this, cryptocurrency exchanges should define certain industry standards and also adopt the same for listing ICOs and any insider trading should be prohibited.
The ICO Business Research Group has proposed that these are minimum principles that should be satisfied as of now.