Major financial giants create Japan Security Token Offering Association

Six Japanese financial giants joined together to establish an association that self-regulates security token offerings in the country.

October 1, 2019, | AtoZ Markets Six major Japanese brokerage firms have formed the Security Token Offering (STO) Association in Tokyo to boost STOs as a fundraising model in the country. These are Nomura Securities, Rakuten Securities, SBI Securities, Monex, Daiwa Securities, and Securities.

STO is slowly booming 

Following the outbreak of the initial coin offering (ICO) bubble last year, the world market is now seeing potential in token-type securities. Many are pushing for the STO platform in the US. And a similar trend is also beginning in the Japanese market.

Monex announced on Tuesday that the association will work as a self-regulatory organization for STO, as these offers have been gaining popularity in all countries. Japan also follows the trend and ensures that sufficient conditions exist for STO to be widely used.

The aim of the association is to guarantee the protection of investors by introducing rules to prevent illegal activities, including money laundering. It is also planning to obtain a certification as an Authorized Financial Instruments Firms Association. This is based on the country’s Financial Instruments and Exchange Act to take advantage of its capabilities as a self-regulatory organization.

The Japanese Association of STO is committed to the development of STO in Japan. It will contribute to a more active capital market and the development of the real economy,” said Monex, who also owns Coincheck concluded.

Creating a regulated environment for blockchain businesses

Meanwhile, crypto exchanges operating in the country also formed another self-regulatory body called the Japanese Virtual Currency Exchange Association. The regulatory body introduced operational guidelines in June last year to safeguard the stock exchanges from potential risks. To date, the Financial Services Agency (FSA) has licensed 20 companies, the most recent of which is a Line subsidiary.

Yoshitaka Kitao, representative director and CEO of SBI Securities, has been appointed as president of the new body. But while a representative of all other founding companies joined the board of directors.

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