Japan Security token offering association releases self regulatory guidelines
The Japan Security Token Offering Association (JSTOA) has just released self-regulatory guidelines on how to separate customer assets and electronic record transfer rights. The guidelines are available on the JSTOA website
At a meeting including employees and the Board of Directors, the association laid out the rules for electronic record transfer rights and management of customer assets, among others. The JSTOA will check the management of separately held customer assets once a month with certified public accountants and audits.
Moreover, as part of their prevention against investment solicitation, the association is calling for a clearer definition of selling digital assets to elderly customers ,those at risk for fraud and to make the efforts to establish guidelines for solicitation.
New laws for regulating cryptocurrencies in Japan are beginning to be enforced. The FIEA and Payment Services Act, both revisions to existing financial legislation, will come into effect starting in May.
Headquartered in Tokyo, the JSTOA was launched in October 2019 to support the development of security token offering fundraising by consolidating expertise from within the industry, ensuring compliance with laws and protecting investors. The association is backed by major financial corporations in the country such as Nomura Securities, Rakuten Securities, SBI Securities, Monex, and others.