While the world is in a state of disarray due to low digital currency prices, Japanese regulators and digital currency companies continue to make progress in new developments.
The Financial Services Agency (FSA) of Japan has announced that it intends to regulate initial currency support (ICO) operations and will put an end to the number of individuals investing in digital currency support (ICO) operations. The Financial Services Authority is expected to seek changes to the Financial Instruments and Securities Trading Act and the laws governing payment settlement services when parliament convenes in January next year.
According to a Japanese media, the FSA will also ask all companies wishing to issue the ICO certification in Japan to register with the agency in advance and will ask companies to determine whether their digital currencies are “investment-type” currencies or, To settle transactions and services and allow customers to purchase materials from companies that export digital currency. The Financial Services Authority is looking to ensure that only professional investors are allowed to buy “investment” digital currencies.
Change the rules of currency trading
In addition, the agency hopes to make changes to the trading rules, allowing it to crack down on price manipulation by spreading false rumors or news. Besides the media outlets, the Financial Services Authority (FSA) has also begun to refer to digital currencies as “encrypted assets” in their official documents, rather than “virtual” currencies.
Elsewhere, Huobi, a Singapore-based digital currency trading platform, returned to Japan only months after it announced it would refrain from targeting Japanese customers to avoid angering Japanese regulators. Huobi has recently completed the purchase of the majority of shares in BitTrade, a platform that has already obtained a working permit from FSA. The platform will now operate under the Huobi logo, but it will require all existing customers to re-register their accounts in order to continue trading.
As mentioned above, there are a number of major Japanese companies targeting M & A deals for licensed platforms, as the FSA appears to be taking its time with the accumulation of applications for operating licenses – with more “potential” acquisitions in the near future.