Japan has been considered one of the pioneers in embracing the cryptocurrency industry in recent years. In its latest decision to further simplify the industry, the Japan Crypto Business Association (JCBA) has made significant progress in redefining the rules for initial coin offerings (ICOs).

JCBA’s Vision for the ICO Market

The JCBA’s latest effort revolves around a proposal for an overhaul of the framework for Initial Exchange Offerings (IEOs) and ICOs. The decision was prompted by the association’s active engagement with Web3 companies, culminating in a series of discussions to determine the most effective guidelines.

According to the JCBA's official website, the preliminary recommendations have been shared with Japan Business Associations, marking the first step toward nationwide acceptance.

The revised blueprint covers four areas aimed at improving the ICO landscape. The initial focus concerns the price calculation process, emphasizing the expansion of calculation technology and the importance of transparency in price-related communications.

At the same time, the Association also addressed liquidity issues and proposed specific benchmarks to ensure adequate liquidity during the listing phase.

A future-proof approach to ICO regulation

The JCBA’s draft further delves into operational stability, establishing protocols for price stability during listings and bringing the cryptocurrency world closer to traditional IPO practices. Another important highlight is the JCBA’s stance on sales restrictions.

The proposed guidelines call for a more structured lock-in approach for issuers and underwriting entities to ensure a balanced and stable market environment.

In response to the JCBA’s recommendations, Yoshihiro Yoshida, Chairman of the JCBA ICO/IEO Committee, expressed the association’s commitment to safeguarding consumer interests.

Unlike the traditional IPO market, Yoshida stressed the importance of taking stringent measures, such as sales restrictions and price stabilization mechanisms. The chairman noted:

Using this proposal as a starting point, we will discuss with relevant agencies common customer protection measures in the IPO market (such as institutionalized sales restrictions) and market efficiency measures (such as price stabilization measures at the time of listing).

Additionally, JVCEA Chairman Genki Oda shared his thoughts on IEOs, acknowledging that they are still in their infancy and have the potential to become a financing tool available to Japanese Web3 investors. Oda stated:

Japan is the first country in the world to institutionalize IEO in terms of laws, regulations, tax systems, accounting, etc. Although it has the potential to greatly accelerate the development of Japan's Web3 industry, it is still in its infancy. #ICO  #日本