The Japan Security Token Offering Association (JSTOA) has released self-regulatory guidelines on how to separate customer assets and electronic record transfer rights.
The guidelines first appeared on April 20, on the JSTOA website. The association attributes the guidelines to the revisions of Japan’s Financial Instruments and Exchange Act (FIEA), passed by the Japanese House of Representatives and set to be enforced starting May 1.
The association laid out the rules for electronic record transfer rights and management of customer assets, among others in a meeting involving its employees and the Board of Directors.
The association calls on for a clearer definition of selling digital assets particularly to its elderly customers, who often are at the risk for fraud, in establishing guidelines for solicitation.
Headquartered in Tokyo, JSTOA was launched in October 2019 to support the development of security token offering fundraising by consolidating expertise from within the industry, ensuring compliance with laws and protecting investors.
The association is backed by major financial corporations of Japan such as Nomura Securities, Rakuten Securities, SBI Securities, Monex, and others.