In a move long-awaited by large swathes of the cryptocurrency community, Japan’s Financial Services Agency (FSA) is set to finally bring regulations into place to regulate Initial Coin Offerings (ICOs), the mechanism by which the majority of new cryptocurrencies raise funds.
Japan previously issued a report in April of this year stating that ICO issuers should clearly lay out how funds and profits were to be distributed among token holders, debtors and creditors. The report also called for projects’ road maps to be tracked and any changes documented.
However, it seems that plans have now progressed to the stage where the FSA are prepared to issue substantive guidelines. The guidelines will not only impact ICO issuers based in Japan, but will be used as a basis to protect Japanese investors when investing and trading in cryptocurrencies.
As the world’s second-biggest crypto market behind the USA, news that Japan is set to begin laying a regulatory framework through which cryptocurrencies can relate to the mainstream will come as a boon to many.
Cryptocurrencies grow as they are adopted and therefore the seal of governmental approval, whilst at this stage tentative, will increase market confidence and can only be beneficial in the long-term.