The Japanese STO Association lays down specific guidelines for the management of separately held customer assets and privacy.
Recently, the Japanese House of Representatives announced that the revised Financial Instruments and Exchange Act (FIEA) will be enforced from May 1. In the latest development in this respect, The Japan Security Token Offering Association (JSTOA) has laid down a set of guidelines in regard to the separation of customer assets and electronic record transfer rights.
The Japanese STO Association held a meeting involving employees and the Board of Directors. In this meeting the number of rules were specified including those of electronic record transfer rights and management of customer assets. The meeting further stated that the JSTOA will monitor the management of separately held customer assets on a monthly basis along with certified public accountants and audits.
Moreover, in a quest to prevent investment solicitation, the board demanded a more lucid definition of digital asset sales to elderly customers so that it can outline specific guidelines regarding the same. – as the association believes that these people are more vulnerable to fraud.
About the Japan Security Token Offering Association
The JSTOA is based in Tokyo and was founded in October last year. It was tasked to support the development of security token offering fundraising by involving industry experts while maintaining compliance with laws so that investors can be protected at all times. The JSTOA has backing from prominent names in japan like Nomura Securities, Rakuten Securities, SBI Securities, Monex, etc.
Crypto Regulations in Japan
Japan has been focusing on strengthening its regulatory compliance in regard to cryptocurrencies off late. As per schedule, the revised versions of the FIEA and Payment Services Act will come into effect from 1st May.