By Staff Writer
Japanese regulators launched their STO market via amendments to the nation’s current securities regulations this week. According to news reports, the amendments will be effective from May 1st.
The changes directly amend the Payment Services Act and the Financial Instruments and Exchange Act. The amendments introduced various new measures varying from new banking regulations and cold wallet requirements to new legal terminology.
Another significant amendment added to the regulations is the legal definitions of initial coin offerings (ICOs) and security token offerings (STOs).
For years, blockchain firms strived to get regulators to illustrate the exact differences in terms of regulations. Now, regulators have a clear cut understanding of what type of fundraising campaign is underway, and how to classify it.
The new amendments go after all forms of market manipulation.
There are now stringent fines and punishments in place for spreading rumors or making false statements. This is a vital addition as market manipulation is a real concern globally. Japanese officials hope they can curb these nefarious actors and filter out bad sources of information.