- The Japan Security Token Offering Association (JSTOA) has modified the Articles of Incorporation, business rules, and self-regulation rules, among others, ahead of the revised Financial Instruments and Exchange Act (FIEA) which is expected to be implemented from 1 May.
The Japanese House of Representatives recently declared the implementation of the revised Financial Instruments and Trade Act (FIEA) from 1 May 2020. Keeping in line with this, the Japan Security Token Offering Association (JSTOA) laid down rules for the effective management of segregated consumer funds and privacy.
As per the official news, the JSTOA held a conference with the employees and the Board of Directors indicating the guidelines including those pertaining to the management of electronic record transfer rights, proper implementation of customer assets, and rules with respect to registration of sales representatives, among others.
The meeting also confirmed that, along with certified public accountants and audits, the JSTOA would oversee the management of separately owned consumer funds on a monthly basis. The board also requested a more concise description of digital asset sales to elderly consumers in a bid to discourage investment solicitation, so that it could outline clear regulations for the group — to prevent them from falling prey to fraudulent activities.
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