The Japan Security Token Offering Association announced on April 20 it had issued new guidelines to protect clients’ assets and privacy.
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The Japan Security Token Offering Association (JSTOA) has just released self-regulatory guidelines on how to separate customer assets and electronic record transfer rights.
Available on the JSTOA website on April 20, the association attributes the guidelines to the revisions of the country’s Financial Instruments and Exchange Act (FIEA), passed by the Japanese House of Representatives and set to be enforced starting May 1.
At a meeting including employees and the Board of Directors, the association laid out the rules for electronic record transfer rights and management of customer assets, among others. The JSTOA will check the management of separately held customer assets once a month with certified public accountants and audits.
Moreover, as part of their prevention against investment solicitation, the association is calling for a clearer definition of selling digital assets to elderly customers — those at risk for fraud — and to make the efforts to establish guidelines for solicitation.
New laws for regulating cryptocurrencies in Japan are beginning to be enforced. The FIEA and Payment Services Act, both revisions to existing financial legislation, will come into effect starting in May.
Headquartered in Tokyo, the 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 in the country such as Nomura Securities, Rakuten Securities, SBI Securities, Monex, and others.
Hisashi Oki and Yoshihisa Takahashi at Cointelegraph Japan contributed to this article.
