The cryptocurrency industry has been faced with regulations here and there forcing industry players to move out and set up shop in other countries. For China, their immediate actions to regulate the industry forced some ICOs to run to crypto friendly country Japan. But now they have to be ready to work within the legal frameworks the Financial Services Agency will set.
According to information from local news outlet Jiji Press, the FSA is looking to set limitations on both the ICO issuers and individual investors. The move comes in the wake of recent hacking and fraudulent activity surrounding the issuance of ICOs by industry players. In a bid to protect both investors and industry players FSA is coming up with regulations to prevent such cases. Furthermore, according to the source relaying information to Jiji Press, the new laws will require ICO issuance firms to register with the regulator first.
To achieve its goal, the FSA will turn to the Japanese parliament table bills for revision in the house and get legislators debating on two laws that will breathe life into the regulation of ICO sector in Japan. The two laws set for amendment come next year when the lawmaker’s resume sessions are the payment services law and the financial instruments and exchange law.
Industry Players can Lobby for Appropriate Laws
With the FSA planning to revise laws already set to fit its recommendations, this gives players in the sector a chance to lobby for laws they deem fit for the industry. Besides lobbying for appropriate laws, they can lobby to get the FSA recommendations of regulating the ICO sector in Japan thrown out.
ICO Laws across the Globe
Across borders in China regulators issued bans and stringent measures to curb the issuance of ICOs and up to now the regulator hasn’t lessened its rules. Further on in Europe UK lawmakers have called on agencies responsible come up with sensible laws to regulate the ICOs and cryptocurrencies sector. On the other hand, the French government has set fair taxation policies to attract investors. Apart from taxation, the government is working on issuing ICO visas to industry players in France. The ICO visas will act as legal papers giving rights to industry players to operate without getting into confrontations with local authority.
Although the FSA aim is to protect investors and individuals from scammers and fraudsters, for now, all eyes are set at the parliament.