Six major brokerage companies in Japan are joining forces to promote the development of security token offerings (STOs) as a fund-raising model in the country.
According to a press release on October 1, Monex inc., together with Nomura Securities, Rakuten Securities, SBI Securities, Daiwa Securities, and Kabu.com Securities, has today established a group dubbed the Japan Security Token Offering Association.
Headquartered in Tokyo as a General Incorporated Association, the said organization aims at developing self-regulation concerning STOs as a form of digital financing methodology, while advancing the STO fund-raising model, with Yoshitaka Kitao as chairman.
Based on the fact that STOs as a financing model has been gaining significant popularity across different countries, Japan is also following the trend and is ensuring that sufficient conditions are in place for STOs to become widely used.
Hence, the Association plans to ensure the protection of investors on the idea to issue regulations that will stand against fraudulent cases, including money laundering and unfair trading.
Besides, the Japan STO Association revealed plans to acquire a certification as an Authorized Financial Instruments Firms Association to fully leverage its capabilities as a self-regulatory organization, under Japan’s Financial Instruments and Exchange Act.
Upon the approval to be certified as a single entity, the organization will consolidate expertise on securities business among related companies and other entities, to explore and develop STO business opportunities in Japan.
Monex added in today’s release.
The Japan STO Association is committed to the development of STOs in Japan which it believes will contribute to a more active capital market and development of the real economy.
With STOs presenting a more legitimate way of fund-raising, several countries are already hyping the concept. As Coinfomania reported recently, the Malta Financial Services Authority (MFSA) revised the regulatory guidelines of the capital market by issuing a new consultation paper for Security Token Offerings (STOs) in the country.
