The government is trying to protect the investors, while giving ICOs the space they need to develop.
The study team that decided these guidelines are backed from the government. It implemented regulation for anti-money laundering policies, identifying traders, tracking transaction progress, and also protecting equity and debt holders. The Financial Services Agency of the country is going to examine the guidelines, which potentially can be evolved into law after a couple of years.
The report includes issuance principles, like acknowledging a means of tracking the white papers’ development and revealing possible influences on debt holders, token traders and investors, and shareholders.
More analytically, the paper specifies some trading principles, such as the confirmation of customers’ suitability and identity, the implement of industry’s minimum standards on coin listings, and the prohibition of wrongful trade practices.
Further, the paper recognizes that it is currently not easy to categorize all ICOs as many different types appear often. However, the paper recommends that the guidelines should apply to 3 types of initial Coin Offerings:
- a venture business type
- an ecosystem type for collaboration with different companies
- a large business type for in-house, high-risk program funding
The guidelines stand side by side with the positions of US, China, and South Korea
The paper obviously recognizes ICOs as securities, a view that is similar to Securities and Exchange Commission of United States. Researcher Kenji Marashima told that Initial Coin Offerings are innovative technology, so if they can include good guidelines, they have the ability to become a new method of raise funding.