Six of the largest Japanese securities firms have jointly announced the establishment of the Japan Security Token Offering Association, with the goal of protecting investors by ensuring that association members strictly comply with Japanese laws and regulations.
According to a BTCManager report, the Japanese companies consist of Monex, Rakuten, Nomura, SBI, Daiwa, and Kabu.com Securities.
Security Token Offerings (STOs) have been in the spotlight recently, as they offer asset-backed tokens and securely store data of the investment product on a blockchain.
In an official press release from Monex, the firm asserts that the STO model is unlike that of the Initial Coin Offering (ICO), which was highly popular in 2017.
“STOs have been gaining popularity in the U.S. and other countries as a new methodology for financing,” the statement reads. “Japan is also following the trend and is ensuring that sufficient conditions are in place for STOs to become widely used.”
Additionally, the Association disclosed that it has plans to obtain certification as an Authorized Financial Instruments Firms Association based on the country’s Financial Instruments and Exchange Act, in order to become a fully self-regulatory organization.
According to the Monex press release, “The Japan STO Association intends to consolidate expertise on securities businesses from among securities companies and other entities so that the STO business opportunities can be explored and developed in Japan.”
“The association also strives to ensure compliance of laws and regulations as well as investor protection, while preventing illegal activities including unfair trading and money laundering.”
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