Japan to Debut Security Token Offerings Next Year

Japan is trying to catch up with the rest of East Asia and plans to allow security token offerings (STOs) next year. A change in their legal will clarify disclosure requirements and rules will be set in place to streamline the process. STOs will be an option as soon as next April. Countries like Singapore, for example, have already such laws on the books.

The association of brokerage firms to establish such security token rules will be led by SBI Securities. Other firms like Nomura Securities, Daiwa Securities Group, Kabu.com Securities, Rakuten Securities, and Monex Group will also take part. Their main focus will be, first, tokenizing real estate which has often been touted as a ‘natural fit’ for the security token industry.

There have thus far been other associations formed in Japan to better address the security token question. Yet, this is the first association to include actual brokerage firms which will make FSA approval much easier. A securities watchdog will also be present to assure STOs become a reality in Japan sometime in 2020.


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