In order to promote domestic blockchain and cryptocurrency-related businesses, the Japan Cryptocurrency Business Association (JCBA) has published its "Recommendations on New ICO Regulation" on Friday, March 8.
The recommendations on Initial Coin Offerings (ICOs) regulations issued by the JCBA — a local industry trade group — focus on three main topics: the expansion of cryptocurrency in Japanese domestic exchanges, as well as the definitions of and regulations for utility tokens and security tokens.
The proposed regulations suggest distinguishing between security and utility tokens and making the former subject to the Financial Commodity Exchange Act.
As the announcement stresses, JCBA started its ICO Review Group at the end of last year and the issued document is primarily addressed to the country’s Financial Services Agency and businesses involved in the cryptocurrency industry. It also adds:
“Based on the discussions at the discussion group [ICO Review Group], this document makes recommendations on what ICO regulations should be.”
As Cointelegraph reported a year ago, JCBA — which together with fellow trade group the Japan Blockchain Association (JBA) then represented 16 registered crypto market operators — then came up with the initiative to produce industry-wide investor safety standards, including guidelines for ICOs.
Back in February of last year, both industry groups, JCBA and JBA, reportedly were set to merge to form a single legally-sanctioned, self-regulatory body, as Cointelegraph reported.