In 2018, authorities are paying close attention to the crypto industry as they try to figure out the best way to regulate ICOs and protect investors from fraud and incompetence that has plagued the ICO domain so far.
A new report indicates regulators in Japan are now looking at how they can strike the right balance between protecting investors and protecting innovation.
Regulation in the Asian country has particularly been a bit lenient as authorities have been keen to let the cryptocurrency experiment go on with the hope that it might jump-start the growth of the dormant GDP.
Japan has experienced its fair share of hacks with the current Coincheck hack being the most recent. This incidence, in particular, has reignited talks of regulation among the concerned authorities and the topic is back on the agenda.
In 2017 the Japanese government made some positive moves towards adoption of cryptocurrencies as they passed the Bitcoin payment law that declared it as legal tender and also gave legal status to crypto exchanges in the country. However, the one issue they failed to address with the legislation was how to properly regulate ICOs.
Sankei Shinbun, a Japanese daily news paper has reported that the FSA is reviewing its ICO regulations as well as being more actively involved in trying to curb any unlawful and fraudulent ICO activity. The business paper goes on to state that the FSA is considering the best way to regulate ICOs.
With Japanese investors their top priority, the FSA has already stepped up its oversight of the space. At the start of this month, they issued a stern warning to a Blockchain Laboratory Ltd that is based in Macau for its role in targeting Japanese investors yet they hadn’t registered with the relevant authorities.
The FSA research team has already begun work and the first round of feedback is expected this week.
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