Six Japanese firms form an association called the Security Token Offering (STO) in Tokyo. The members of the association are Nomura Securities, Rakuten Securities, SBI Securities, Monex, Daiwa Securities, and Kabo.com Securities.
Purposes of STO association
The association will work as a self-regulatory body for STOs. Therefore, it aims to boost the STOs culture and to promote it as a fund-raising model in Japan, said Monex.
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The association will also ensure that the regulations will protect the investors and help prevent illegal activities. These activities are often associated with cryptocurrency and tokens, such as financing terrorism or money laundering.
The Blockcrypto reported that the association is also planning to get a certification as an Authorised Financial Instruments Firms Association. It will be based on the Financial Instruments and Exchange Act of Japan.
Six major Japanese firms form association
The Security Token Offerings (STO) Association brings supports to STOs, just months before the implementation of the regulations on the public sales of the coins in Japan.
The six brokerage firms are both old and new. In this connection, Nomura Securities and Daiwa Securities are the older founding members of the association.
In addition to this, the new ones that join forces include Kabu.com Securities, Monex, Rakuten Securities, and SBI SECURITIES.
Coindesk reported that the group does not include SMBC Nikko Securities.
In May 2019, Japan amended the Act on Settlement of Funds and the Financial Instruments and Exchange Act. In this regard, the Act regulates the sale of the coins. This will go the same as the offerings of conventional securities.