Japanese Crypto Association Attempts To Reform Rules For ICO

• The Japanese Crypto Asset Business Association recently submitted a draft of ICO reforms.
• The association is trying to make it easier for Japanese firms to conduct initial coin offerings.
• JCBA’s new rules would include liquidity targets for listing as well as provisions for price stabilization.

The Japanese Crypto Asset Business Association (JCBA) recently unveiled an initial draft of rules to overhaul the initial exchange offering (IEO) and initial coin offering (ICO) processes in Japan’s crypto market. The draft came after a dedicated subcommittee of the JCBA initiated discussions with Web3 firms to develop an ideal framework for IEOs and ICOs.

According to the association’s official website, the initial draft of the direction for self-regulatory reform for IEOs was submitted to the Japanese Business Association. The JCBA, which was formed by the Japan Virtual Currencies Exchange Association (JVCEA), highlighted four key agendas in its latest draft.

The first item on the agenda is price calculation, which would include the diversification of calculation methods and clear warnings regarding prices. The second item revolves around liquidity, which would focus on setting liquidity targets at the time of listing and creating an environment where liquidity can be secured.

The draft also included stabilization operations, which would establish rules regarding price stabilization at the time of listing. Lastly, the JCBA suggested sale restrictions, specifically the institutionalization and tightening of lock-ups on issuers and underwriting exchange companies. The items on the agenda are aimed at improving the environment for IEOs and ICOs in the country.

“Based on this proposal, we will implement customer protection measures such as institutionalizing sales restrictions and measures to improve market efficiency, such as price stabilization measures at the time of listing, which are common in the IPO market,” stated Yoshihiro Yoshida, the Chairman of the JCBA ICO/IEO Committee.

JVCEA Chairman Genki Oda stated that IEOs demonstrated their potential as a new financing vehicle for the country’s investors. He added that the JCBA’s efforts to develop rules for IEOs and ICOs were an indicator of the future potential of Japan’s Web3 market.