The Japan STO Association revealed that it had issued new guidelines to ensure clients’ financial safety and privacy.
The Japan Security Token Offering (STO) Association has released self-regulatory guidelines on how to distinguish clients’ assets and electronic record transfer rights. The guidelines are available on the association’s website.
Japan STO Association unveils new guidelines
The association has attributed the guidelines to Japan’s Financial Instruments and Exchange Act (FIEA). The act was passed by the Japanese House of Representatives and is set to be enforced starting May 1, 2020.
Notably, the association has released new reference guidelines defining different aspects of STOs at a meeting. The meeting comprised of association employees as well as the association’s Board of Directors. The japan STO Association will also assess the management of separately held customer assets once every month with certified public accountants and audits.
Furthermore, the association is trying to prevent fraud by calling for clear definitions of selling digital assets to elderly customers. Such customers are the ones that are usually at risk of fraud; hence by protecting such customers, fraud can be prevented to a great extent.
The Japan STO Association was established in October 2019 to encourage the growth of STOs in Japan and to supervise the sector. Among various other things, the association is responsible for ensuring that the crypto-related businesses in Japan follow the laws and regulations.
The association is backed by major financial institutions operating on the island nation such as Nomura Securities, Rakuten Securities, Monex, and numerous others.
Featured image by pixabay.
