Japan’s Financial Service Agency (FSA) is reportedly considering creating a regulatory framework that companies making efforts to raise funds through ICO (initial coin offerings) should adhere to.
According to Sankei Shimbun, the agency would want to review and amend as needed the laws and regulations that would ideally apply to token sale activities within the country. As of the moment, Japan h has no particular regulations for ICO, and even the existing bitcoin payment law is insufficient in its present form. Said the report, “There is an increasing demand for amendment of the law, and the FSA is planning to consider suspension of inappropriate ICOs.”
Meanwhile, the agency has already started taking a closer look at companies deemed partaking in suspicious ICO activities. It has also recently issued multiple warnings to a cryptocurrency firm based in Macau, which is said to be soliciting funds from Japanese residents.
Should the agency’s plan push through, it would make Japan the latest in a growing list of countries moving to put up clear regulations concerning ICO and other cryptocurrency transactions, such as Austria and Germany.