News: Information regarding possible prohibition of ICO in such jurisdiction as Japan

Information regarding possible prohibition of ICO in such jurisdiction as Japan

Under the notion of ICO in Japan, we mean a powerful platform in the cryptocurrency market, with trading capacity of more than 62 percent of the world bitcoin market.

However, the initial sale of tokens is currently prohibited in certain major (global players) Asian countries, which can not but cause concern among investors that Japan may become the next country to prohibit conducting of ICO in its territory.

Let’s remind that Initial Coin Offering is a new form of monetary financing, and at the moment it is really an innovative method for many companies because investors can use new technologies (in comparison with traditional shares) more effectively.

Bitcoin in Japan is recognized as a legitimate means of payment, due to which this country is on the list of world leaders in terms of the number of legal cryptocurrency exchanges.

Japan, in its unique approach to the cryptocurrency, is perceived by many organizers and investors as the "savior of ICO" and there is much truth in the foregoing statement.

For example, after the prohibition ofinitial offering of tokens in China, the Japanese cryptoexchange Coincheck (one of the largest in Japan) has increased the number of requests for the inclusion of ICO tokens at times.

However, some experts consider Japan to be by no means a safe harbour for ICO due to the risk-averse and conservative nature of many industries in this jurisdiction that can provoke this prohibition.

The reason for the prohibition of initial offering of tokens in such economically powerfulcountries as South Korea and China was the issue of the need to regulate bitcoin and other cryptocurrencies, which remained unresolved.

In the opinion of the same experts, Japan with all its friendly approach to the cryptocurrencymay be extremely unfriendlywith respect to ICO.

Also, the government of the land of the rising sun can prohibit ICO due to a possible influx of fraudulent ICO into Japan's cryptocurrency market.

On the other hand, Initial Coin Offering can become a revolutionary concept for Japan, which will give it all the benefits of attracting many ICO projects to the fullest extent.

In the near future, prohibition of ICO in Japan is unlikely; although the cryptocurrency sector appears on close inspection to regulators, there are no alarming prerequisites for a ban.

For more detailed information, please contact the lawyers of Law&Trust International.