JIJI Press, one of the most reliable Japanese press outlets has made a big announcement. It has reported that the Japanese Financial Services Agency is soon beginning to regulate the ICOs. The proposed Initial Coin Offering regulations are meant for better protection. It will include investments limits.
How It Will Work
This new guideline will just work the same way the SEC works in the United States. All security tokens in the US are required to register with the Securities Exchange Commission before they could operate. Just in the same manner, cryptocurrency exchanges will have to register with the FSA in Japan. There is a slight difference in the manner the FSA and the SEC work. The Securities Exchange Commission, for instance, has a number of old pieces of legislation.
The Financial Services Commission of Japan is required to submit bills to the parliament of Japan. These bills modify the actual Japanese financial law so that the regulations can be enforced. This, in return, gives the crypto firms a chance to potentially lobby various regulations. They can also decide to kill the bill if it’s not right.
The Expected Effects Of The New Law
Apart from affecting the Initial Coin Offerings in Japan, the proposed laws would also do other things. To some extent, it would limit Japanese citizens in their ICOs investments. There is also a wider global picture on the issue of ICO regulation. Congressman Warren Davidson has been so vocal about this issue in the US. He thinks the SEC should be barred from having any control over the blockchain and the Initial Coin Offerings. But it is not only in Japan and US only where the issue of ICO regulation is being tackled. Other countries like France also have their own issues in regards to this whole issue.
ICO Regulations All Over The World
Crypto taxation in France has been made friendlier recently than it was before. However, the French government is committed to making the country one of the Initial Coin Offering hubs in the whole world. That has not made it competitive as it is expected. In fact, ICO visas would be issued in France. This is expected to offer the officers and companies a certain level of protection whenever they operate in France.
In China, things are totally different. The initial coin offerings have been regulated out of existence. However, it is legal to hold the virtual coins in China. In an interesting twist, a number of Chinese Initial Coin Offerings moved to Japan. Here they will be forced to abide by all the laws as early as 2019’s first quarter.
The lawmakers in the United Kingdom had also expressed interest in coming up with a regulatory framework for the virtual coin. This would also work for the Initial Coin Offerings. The blockchain technology is also fully embraced in Rwanda. It does this to control its land titles system. There is still a number of countries where the regulation has not been felt. This, however, comes with several risks.