The Japan Cryptocurrency Business Association (JCBA) is weighing in with ideas as the nation's financial services regulator works out new regulations for ICOs and cryptocurrency. The trade group says it wants to aid in "the sustainable development of cryptocurrency business[es]" in Japan. This group, comprised of crypto exchanges, banks, insurance companies, and associated businesses, also wants to educate business professionals and the public at large about the budding crypto ecosystem and related technology such as blockchain.
Along those lines, the JCBA has just published its report, "Recommendations on New ICO Regulations," which summarizes the group's latest thinking on the growth of the crypto industry in Japan, as well as ideas on how to define and regulate security tokens and utility tokens. The published report was developed for presentation to Japan's Financial Services Agency and concerned businesses.
The statement from the JCBA points to the need for:
- "Arrangement[s] for sound expansion of virtual currency..."
- "Distinction between tokens (security tokens) subject to regulation by the Financial Instruments and Exchange Act and tokens (utility tokens) subject to settlement."
The JCBA report also refers to long-standing challenges that need to be addressed in the interest of investor safety and the health of the crypto industry. Concerns include disclosure and accounting standards, the need to avoid "double regulation," and the need to maintain a viable secondary market.