The Japan STO Association announced that it had issued new regulatory guidelines to protect customer assets and privacy. The guidelines also include how to separate customer assets and electronic record transfer rights.
22 April, 2020 | AtoZ Markets – Based in Tokyo, the Japan Security Token Offering (STO) Association was launched in October 2019. It supports the development of fundraising by security tokens by consolidating sector expertise, ensuring compliance with laws, and protecting investors. The association supported by major financial companies in the country such as Nomura Securities, Rakuten Securities, SBI Securities, Monex, and others.
Japan Releases New STO Regulatory Guidelines
The Japan STO Association has released new regulatory guidelines to the Financial Instruments and Exchanges Act (FIEA). It is expected to take effect on 1 May, 2020. New revisions include the articles of association, trade rules and self-regulatory laws on overall transfer and storage of electronic payments and its separation of customer assets.
The association also attributes these directives to revisions of the country's FIEA, adopted by the Japanese House of Representatives and who come into force on 1 May. It also stated:
"The association plans to apply for certification from the Certified Financial Instruments and Exchange Business Association, which stipulated of the law on FIEA ".
The association notably defined the rules for electronic record transfer rights and the management of clients' assets. It will verify the management of the assets of clients held separately once a month with chartered accountants and audits. The association also aims to fight against fraud in the field of digital payments, regard to vulnerable customers such as the elderly.
Countries Continue to Implement FATF Guidelines
The Financial Action Task Force (FATF) has issued controversial guidelines concerning crypto rules to 37 nations. It has also asked them to apply or assume the consequences. Several countries have already implemented crypto regulations based on these guidelines. The FATF has given its 37 members 12 months to adopt the guidelines and enforce stricter crypto regulations. Singapore, South Korea, Japan, the UAE, Switzerland and many other countries have also adopted these guidelines.
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