An ICO (Initial Coin Offering) represents a fundraising mechanism through which new projects sell their underlying crypto tokens against bitcoin and ethereum. In certain ways, it is similar to an IPO (Initial Public Offering) in which investors acquire shares of a company. Our company formation consultants in Japan can assist entrepreneurs who are interested in launching an ICO in Japan.
In order to launch such campaigns, you will need a company and a website through which the virtual coin can be promoted. An ICO is also similar to a crowdfunding platform: a company offers something – in this case, a virtual currency, in exchange for a sum of money (most of the times) which are gathered for diverse investments.
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ICO regulations in Japan
In Japan, there are no special regulations related to ICOs. The local legislation does not prohibit them, either. However, not all ICOs are allowed in the country.
The current financial regulations, for example security and collective investment scheme rules, as well as virtual currency or prepaid payment instrument rules may apply to some types of ICOs.
Even when those regulations do not apply, other legislation, like civil law, commercial transaction law, consumer protection legislation and criminal law almost always apply to ICOs. Our Japan company formation consultants can provide more details on this matter. We also offer assistance in starting a company in Japan.
The local FSA declared that if an ICO falls under the scope of the Payment Services Act (PSA) and/or the Financial Instruments and Exchange Act (FIEA), then these offerings have to be registered with the FSA.
The ICO market in Japan
The ICO market in this country is developing. Small, as well as large companies, are utilizing token sales to gather funds. Our company registration agents in Japan can help you open an ICO in this country.
For example, it was recently reported by NewsBitcoin that the Japanese internet giant, GMO, is planning to utilize an ICO to sell the 7nm bitcoin mining boards.
Moreover, the Chinese bitcoin exchanges are reported to attempt to move their ICO businesses to Japan.
If you need to know more about the ICO market in Japan, or for help in setting up a company in Japan, please get in touch with us.