Japan, the world’s leading crypto-friendly nation, is home to LEVIAS J-STO, an ambitious Security Token Offering (STO), which is a significant upgrade to the infamous Initial Coin Offering (ICO). Japan holds rank with the first countries to acknowledge digital currencies and remains in the front row of expanding the security token sector.
Japanese Laws Compliant STOs
According to the company’s website, J-STO plans to offer a unique STO under the existing Japanese laws. Interested investors will receive security tokens which will represent their positions. The firm explains that “LEVIAS-STO Solution will collaborate with financial operators, law firms, technology operators and other professionals to support fund-raising for global entrepreneurs.”
Japan’s Financial Services Agency (FSA) modified the Act relating to settlement funds and the Financial Instruments and Exchange Act (FIEA). The changes introduced a number of regulatory requirements for businesses planning to host ICOs that function similarly to securities. Now, these ICOs fall directly under the current securities regulations according to FIEA. Speaking to Digital Asset Live, LEVIAS CEO Keiko Tanaka explained:
“STO must comply with the Financial Instruments and Exchange Act to sell securities (Security Tokens) and raise funds from many investors in Japan. J-STO realizes STOs using a business-type fund (collective investment scheme) established under the framework of current Japanese laws and regulations.”
J-STO is a product of the Japan-based AI and blockchain solution provider LEVIAS, whose solution has been hailed as a breakthrough since the country is not commonly associated with STO’s due to the strict regulatory nature of STO’s. The game-changing solution that J-STO brings is a kind of collective investment that distributes tokens representing the security. It is through using the J-STO method that LEVIAS conducted its own STO. Tanaka added:
“It took more than two years for LEVIAS in legal discussions to launch the J-STO Solution.”
Japan handles security tokens using the traditional “securities” themselves. There are different laws and regulations for each asset class that’s backed by security tokens and it requires them to strictly adhere to the Financial Instruments and Exchange Act.
LEVIAS believes in using blockchain and AI to create an environment that will open up the investment market to more people making highly stable profits. The purpose of fundraising, dubbed Solar J-STO is to create “a funding scheme that uses Security Token, for solar photovoltaics business operator.”
Breeding Grounds for Digital Revolution
The Japanese are among the leading users of cryptocurrencies which the country officially recognized on April 1, 2017, followed by the September 2017 recognition of bitcoin exchanges as legitimate businesses protected by the official first regulatory framework in the world.
Even though Japan’s new regulations have placed a larger workload on businesses planning to enter the security tokens sector, pundits see this as a necessary step towards the digitization of the economy. The Launch of LEVIAS’ J-STO will ensure that Japan remains at the front row of the crypto revolution and, the latest amendments confirm that the land of the Rising Sun has all the intentions to remain the favorite place for blockchain investors. Tanaka told Digital Asset Live:
“This innovation may promote the liquidity of all assets and generate significant economic effects […] our J-STO is going to make opportunities for excellent entrepreneurs to take on global challenges, get over difficulties, and build an innovation model that contributes to our society.”