Legalization of ICO in Japan is already closed

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Japan plans to legalize the ICO and is preparing the ground for this step. Tokyo University Tama developed the principles of ICO regulation for the country. The group of researchers worked on them with the support of the government. The primary focus of the document is on protecting the interests of investors and measures to prevent fraud. 

Among the developed principles, a system for identifying traders is proposed, and measures to track the implementation of projects, but to protect the holders of tokens and control the fulfillment of obligations. The organizers of the ICO should provide accurate information on how the funds raised will be spent, and how future profits will be distributed among the owners of the tokens. Not left without attention and crypto-exchange platforms. Crypto-exchange exchanges will have to create common standards for listing ICO-tokens for the industry. Also, platforms must stop insider trading. 

Developed proposals before the end of the month will be pending with the Financial Services Agency, Japan's chief economic regulator. However, these principles will take effect only in a few years. According to expert Kenji Harashima of the Mizuho Research Institute, ICO is an innovative technology, therefore, to uncover its full potential, clear rules are needed.