The Japan Security Token Offering Association announced on April 20 that it had issued new self-regulatory guidelines to protect clients’ assets and privacy. The STO Association attributes the guidelines to the revisions of the country’s Financial Instruments and Exchange Act (FIEA), which passed by the Japanese House of Representatives earlier and is set to go into effect by May 1. Employees and the Board of Directors held a meeting in which the association laid out the rules for electronic record transfer rights and management of customer assets, among others.
The association makes regulation against investment solicitation.
The Japan Security Token Association, as part of its prevention against investment solicitation, is calling for a clearer definition of selling digital assets to elderly customers those who are at risk for fraud and to make the efforts to establish guidelines for solicitation. The association will review the management of separately held customer assets every month with certified public accountants and audits. New crypto regulations in Japan are beginning to be enforced as the IEA and Payment Services Act, both revisions to existing financial legislation, come into effect from next month.
Countries continue to implement FATF guidelines.
The FATF, an intergovernmental organization tasked with combating money-laundering, issued some controversial guidelines regarding crypto regulations to 37 nations and asked them to enforce them or face the consequences. Several countries around the world have already implemented crypto regulations based on the guidelines. The Financial Action Task Force gave its 37 members 12 months to adopt the guidelines and enforce more strict cryptocurrency regulations. Singapore, South Korea, Japan, UAE, Switzerland, and many other countries have adopted these guidelines.
The Japan Security Token Offering Association was launched in October last year to support the development of security token offering fundraising by consolidating expertise from within the industry. It also works to ensure compliance with laws and protecting investors. Major financial corporations back the association in the country, including Nomura Securities, Rakuten Securities, SBI Securities, Monex, and others.