Six major brokerage firms in Japan have officially established Japan Security Token Offerings (STO) Association.
The brokerage firms are:-
On Oct 1st, the news was officially announced by Japan’s financial giant Monex.
Japan STO Association launches ‘in order to support the development of STO fundraising by consolidating expertise in the industry, ensuring compliance with laws and protecting investors.’ It will be headquartered in Tokyo.
According to the press release, the general incorporated association will mainly be collaborating on the development of self-regulation for STO. It will be chaired by Yoshitaka Kitao, CEO and representative director of SBI Holdings and an exec at Ripple Labs.
The announcement by Monex highlighted the difference between STO and initial coin offerings (ICO). The company emphasized that ‘ICO industry experienced some fraudulent cases, while issuance and trading of security tokens is legally recognized and its global popularity is growing as a new methodology of financing.’
Owner of major Japanese crypto exchange Coincheck also revealed ‘the new organization’s plans to obtain the certification as an Authorized Financial Instruments Firms Association in order to fully leverage its self-regulatory capabilities.’
On Sept 30th, Wallstreet Journal reported that major US crypto firms such as Coinbase and Kraken will set up a council to rate tokens.