Japan Security Token Offering Association Publishes Self-Regulatory Guidelines for Managing Clients’ Cryptoassets


The Japan Security Token Offering Association (JSTOA) recently published self-regulatory guidelines which cover how to separately manage client assets and digital record transfer rights and obligations.

The guidelines may now be accessed through JSTOA’s official website.

The security token management association said that the guidelines were updated to reflect the recent changes made to Japan’s Financial Instruments and Exchange Act (FIEA), which was just passed by the Japanese House of Representatives and will go into effect on May 1, 2020.

During a recently held meeting, which included board members and several employees, the JSTOA noted that they’ve specified the rules and guidelines for digital record transfer rights and how to manage client assets, among other business requirements.

The JSTOA said it would be checking how customer assets are being managed each month with the help of certified accountants and auditors.

In order to prevent or discourage inappropriate investment solicitation, the JSTOA said it would recommend a clearer definition of what constitutes selling digital assets to elderly investors.

There have been many cases where customers have been lured into fraudulent cryptocurrency investment schemes. The association aims to establish strict guidelines for investment  solicitation.

New laws and regulations for crypto assets are now being enforced. The FIEA and Payment Services Act, which are both updates to the current financial regulations in the country, will be enforced, beginning on May 1, 2020.

Based in Tokyo, the JSTOA was established in October of last year, in order to accelerate the ongoing development of security token offerings (STOs).

The organization aims to improve fundraising processes carried out via STOs by leveraging the expertise from within Japan’s crypto and blockchain sector. The association plans to assist crypto businesses with compliance-related matters and with offering investor protection

The JSTOA is supported by large Japanese financial companies, including Monex, Nomura Securities, Rakuten Securities, and SBI Securities.

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