The Security Token Offering(STO) is slowly booming and to promote this, six major Japanese brokerage firms have come together and formed an STO Association in Tokyo. The aim behind this association is to boost the STOs culture and to promote it as a fund-raising model in the country.
The six firms involved in this association are- Rakuten Securities, Nomura Securities, Monex, Daiwa Securities, Kabu.com Securities, and SBI Securities. Monex announced the news explaining that the formation of this association aims to work as a self-regulatory organization for STOs as they have been gaining popularity among countries.
The association will ensure investors protection with the help of regulations that will help in preventing illegal activities which includes money laundering. They are also trying to get the certificate to be an Authorized Financial Instruments Firms Association, according to the Financial Instruments and Exchange Act to make the best use of their capabilities as a self-regulatory organization.