Six major Japanese brokerage firms – Nomura Securities, Rakuten Securities, SBI Securities, Monex, Daiwa Securities and Kabu.com Securities – have formed the Security Token Offering (STO) Association in Tokyo to boost STOs as a fund-raising model in the country.
Monex announced the news on Tuesday, saying that the association will work as a self-regulatory organization for STOs as these offerings have been gaining popularity across countries. “Japan is also following the trend and is ensuring that sufficient conditions are in place for STOs to become widely used.”
The association aims to ensure investor protection by bringing in regulations in place to prevent illegal activities, including money laundering. It is also planning to get a certification as an Authorized Financial Instruments Firms Association based on the country’s Financial Instruments and Exchange Act to fully leverage its capabilities as a self-regulatory organization.
“The Japan STO Association is committed to the development of STOs in Japan which it believes will contribute to a more active capital market and development of the real economy,” Monex, which also owns cryptocurrency exchange Coincheck, concluded.