Japan Financial Services Agency (FSA) announced on December 1 its plans to draft a bill, Initial Coin Offering (ICO). The main goal of the department is to protect investors from scammers.
ICO is an effective methodraising funds, however, according to FSA representatives, many blockchain startups are not fulfilling their obligations and are deceiving investors. According to a study by the Stratis Group, in 2017, about 80% of ICO projects turned out to be fraudulent, in 2018 this figure is slightly less - 78%.
To protect the rights of investors Agencyproposes to oblige ICO managers to register with the FSA. The process of issuing cryptocurrency and its sale will be regulated in accordance with the law on financial instruments and payment services. Corresponding amendments will be submitted to Parliament in January 2019.
Singapore authorities also drew attention to the ICO. On November 30, 2018, the Monetary Authority published a new version of the token issuance manual. It states that the activities of crypto companies during the ICO should comply with legislative standards aimed at combating money laundering and terrorist financing. Even if tokens are not considered securities, the company that sells them must take all measures to suppress illegal financial activities.