Is it possible for foreign companies to do ICO for people in Japan?
We hear a lot from foreign clients about legal aspects of in .
In this series, we will clarify legal regulations regarding in based on , who is responsible for regulations in .
Big Picture
1- All of the legal regulations regarding ICOs are announced by Financial Services Agency
2- In , you need a license to issue because issuing are categorized as “virtual currency exchange service”
3- Voluntary groups are trying to change the situation, so there is a chance that this would change in the future
Who is announcing the legal regulations regarding cryptocurrency in Japan?
In , all of the legal regulations, including ICO, are announced by .
Every company and individual follow the rule written by Financial Services Agency and it is crucial for foreign companies to understand the announced by .
Is ICO not possible in Japan?
Under the current regulations, ICO and are categorized as .
As mentioned above, you need a license to practice virtual currency exchange service, and as of now, only 19 companies have the license (most of them are exchange).
It is very difficult to get a license, and after the in 2018, only 2 companies got the license.
Future of ICO in Japan
In March, because it is so hard to acquire the license for virtual currency exchange service, a group called wrote a proposal to Financial Services Agency.
In this proposal, wrote that is left behind and argued for deregulation of ICO and STO in .
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Chinese bitcoin exchanges are gearing up to resume cryptocurrency withdrawals following the implementation of a video verification procedure.
Know-Your Customer via Video
Following the in which Chinese exchanges detailed the information required from clients in order to process their withdrawals, users are now receiving emails announcing video identity verification in accordance with the latest KYC/AML procedures imposed by the People’s Bank of China (PoBC).
The reads:
In accordance to KYC / AML regulations and account monitoring procedures Huobi is subject to, we will initiate video verification at 17:00 Mar 28th (GMT +8), please cooperate to complete video verification as requested then, or it may affect your withdrawals.
Namely, two of the so-called “Big Three” exchanges Huobi and OKCoin have started implementing video verification.
Following Huobi, OKC has also started video verification.
Recently, the PBoC proposed a draft that exchanges in the country considered acceptable except for one: on-site verification prior to opening an account, a practice that is common to traditional banks but not to bitcoin exchanges.
However, the latest move by the exchanges suggests that on-site verifications will not be implemented, at least for the time being. It also means that if the PBoC and exchanges have finally reached an agreement on AML (Anti-Money Laundering) procedures, cryptocurrency withdrawals should resume very soon.
The return of cryptocurrency withdrawals should help exchanges regain some of the customers that have been flocking towards in recent months. However, with the removal of margin trading and , it’s unlikely that the Chinese market will regain its 90%+ share of the global bitcoin trading market.
Exchange operators will require users to provide their personal information along with explanations of the sources of the funds to be withdrawn and their intended withdrawal destinations.
Now, with the addition of video confirmation, China has become one of the most countries for bitcoin exchanges.
While some traders may feel drawn to the clarity these regulations provide, others may choose to stick with p2p alternatives like and who offer greater privacy and which have experienced record trading volumes since the PBoC clampdown.
In the long-run, the regulations imposed on exchanges may make for a healthier, more decentralized bitcoin market and help boost bitcoin’s overall reputation within the country.
Furthermore, the introduction of clear rules and guidelines may make way for alternative cryptocurrencies to be added on these exchanges that have, so far, only dealt with bitcoin and Litecoin.
Do you think "big three" will list new altcoins after withdraws are resumed? (Now they only have btc and ltc)
Can Chinese exchanges recover from the blow dealt by the PBoC and return to their old selves? Will they add new cryptocurrencies? Let us know what you think in the comment section.
