ICOs Could be Regulated in Japan Soon
On the onset of January next year the Financial Services Agency (FSA) of Japan will be submitting revisions for the Payment Services Law and Financial Instruments and Exchange Law.
The two laws will shape the country’s ICO regulatory system.
Japan’s Jiji Press reports that the FSA will put a ceiling on investments in ICO done by locals. This measure is to improve investor protection. Also, the regulatory body will obligate operators who issue their own cryptocurrency to register with the FSA.
The FSA and Past Actions in the Crypto Industry
According to Nikkei Asian Review, last October, the FSA put caps on margin trading involving cryptocurrencies to constrain speculative trading and increase investor security.
In the same month, Finrazor reported that the agency granted the Japan Virtual Currency Exchange Association, or JVCEA, the capacity to self-regulate. But this capacity is only limited to the spectrum of cryptocurrencies, without taking stablecoins into account.
Japan’s View on Stablecoins
According to the FSA, stablecoins do not fall on the same category as cryptocurrencies. The agency said that stablecoins, being dollar-pegged, does not possess the same nature as cryptocurrencies and the lack of fixed characteristics makes it unfeasible to categorize.
Since stablecoins do not meet the criterion, does not fall under the self-regulatory capacity of the JVCEA.