Japan plans to enforce laws to legalize Crypto Currencies fundraising

Japan has recently unveiled a set of proposed regulations to legitimize the controversial means of raising money in the crypto currencies world. A government-backed research group has set up rules and legislations that would see initial coin offerings (ICOs) given regulatory definitions and approval. An ICO is a way to increase capital by issuing and selling new tokens in exchange for already existing crypto currencies, such as Bitcoin and Ethereum.

The proposed guidelines allegedly include identifying investors in an attempt to combat money laundering, protecting existing shareholders and debt holders, and restricting certain unfair trade practices such as insider trading.

The new legislations were proposed at a time when China and South Korea are tightening the cryptocurrency rules with their own regulations, aiming to curb speculation in the emerging markets. Last year both countries banned ICOs because of fears of illegal activity.

Japan has recently witnessed one of the biggest thefts in the world of crypto currencies, when more than 500 million dollars worth of tokens were stolen earlier this year. The Coincheck cryptocurrency exchange was the main target of this event, and claimed they would refund customers.

The collapsing of Mt. Gox, which was seen as a test for Bitcoin, that rose to a record close to $20,000 last year but has since fallen significantly since then.

On Monday, the US Securities and Exchange Commission (SEC) has charged two founders of a crypto currency over concerns about fraudulent conduct associated with their ICO. Separately, the messaging company Telegram is holding what is believed to be the largest ICO ever. Telegram, which provides messages via end-to-end encryption, is the main platform used by many investors as a means of communication. The company is looking to raise $2 billion in invested funds.


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