Japan Proposes Legalization of ICO Fundraising
Japan has unveiled proposed guidelines for the legalization of raising money in the cryptocurrency space.
A government-backed research group has put forward rules that would see ICOs (initial coin offerings) given regulatory definition and approval.
An ICO is a means of raising capital by issuing and selling new crypto tokens in exchange for cryptocurrencies like Bitcoin and ethereum (ETHUSD)
Proposed guidelines include identifying investors to prevent money laundering, protecting existing shareholders and debt holders, restricting unfair trade practices like insider trading and ramping up cybersecurity efforts.
The proposals come as China and SKorea toughen up on cryptocurrencies with their own regulations to rein in speculation in the nascent market.
Last year, both countries banned ICOs due to concerns of illegal activity and speculative investing in the space.
The US SEC has increased regulatory scrutiny of ICOs over concerns of fraudulent behavior associated with the practice.
Meanwhile, messaging service Telegram is holding the largest ever ICO. Telegram, which secures messages via end-to-end encryption, is itself used by many cryptocurrency investors as a means of communication. The firm is looking to raise $2-B from the fund raise.
Currently, Bitcoin is trading at: 6,802.721191,+45.963867 or +0.680272%, as of 4:18a BST, the market is open
Have a terrific weekend
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