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The Japan Security Token Offering Association

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The Japan Security Token Offering Association

This week, a group of well-known Japanese brokerage firms announced the official formation of the Japan Security Token Offering Association. This self-regulatory body seeks to provide investors and businesses with more clarity in the market. The move coincides with growing interests in blockchain crowdfunding techniques in the region. It also signals more cooperation among Japanese officials, traditional finance firms, and the blockchain community.

In total, six brokerage firms participated in the creation of the new Tokyo-based association. Nomura Securities, Rakuten Securities, SBI Securities, Daiwa Securities, kabu.com, and Monex. Each member of the association has years of experience and a vast network to bring to the table.

Monex Press Release

News of the association came via a Monex press release. In the release, Monex explained the goals of the association and its overall focus. Importantly, the group seeks to usher in a clear regulatory framework and consumer protections. They believe this is necessary to incubate the STO sector.

Monex Press Release - The Japan Security Token Offering Association

Monex Press Release – The Japan Security Token Offering Association

They also want a stronger network of STO-related businesses to facilitate more momentum in the industry. The concept is simple. Approved and regulated service providers can find clients in this large network. Likewise, clients can find trustworthy and regulatory compliant providers and advice.

Innovation

The Japan Security Token Offering Association is all about innovation. In the post, the association states that it is “committed to proposing innovative, future finance with a creative mindset, leveraging new ideas and perspectives that go beyond the traditional framework.” Notably, the association plans to file for certification as an Authorized Financial Instruments Firm Association.

The group consists of some of the largest brokerage firms in the country. SBI Securities will lead the association. SBI's operating income for 2018 was 337 billion JPY. They are joined by two other traditional brokerage firms – Nomura Securities and Daiwa Securities Group.

The last three members of the group all operate large online platforms. Both Kabu.com Securities and Rakuten Securities are online brokerage firms. Interestingly, Monex operates the crypto exchange Coincheck.

Japan Security Token Offering Association

The official launch date of the association is October 1, 2019. The group's headquarters is in Minato-ku, Tokyo. The Chairman is Yoshitaka Kitao, Representative Director and Chairman of SBI SECURITIES Co., Ltd.

Japan STO

Japanese officials are onboard with the idea of a self-regulatory body operating in the STO space. The group intends to crack down on shady operations. In general, the added clarity will help inform investors and prevent illegal activities.

April Showers

Next April a ruling by Japanese officials will make STOs formally legal in the country. Currently, STOs aren't illegal in the country, but, because they lack a legal framework, such as what disclosure requirements must be met, they are still riskier than traditional means.

Japan Security Token Offering Association

The creative minds behind the Japan Security Token Offering Association have the right idea. They want to spur growth across the STO sector. Giving investors and businesses more confidence is the best way to accomplish that task.

David Hamilton is a full-time journalist and a long-time bitcoinist. He specializes in writing articles on the blockchain. His articles have been published in multiple bitcoin publications including Bitcoinlightning.com