Tech Bureau, a blockchain technology and cryptocurrency group company with offices in Japan, the U.S., and Europe announced today they will be accelerating preparations to make its recently launched COMSA ICO platform business regulated under the Payment Services Act of Japan.
The revised Payment Services Act of Japan came into effect April 1st, 2017 and requires strict accounting, security, and separation of clients’ assets. Later in the year, on September 29, 2017, Tech Bureau successfully registered with the FSA and was among the first group of companies authorized by the FSA as a cryptocurrency exchange service provider.
What it Means
To turn the COMSA ICO Platform into a cryptocurrency exchange service, Tech Bureau needs to introduce a governance structure in accordance with the revised Payment Services Act. As a result of this transformation, users of the COMSA ICO platform can initiate their token sales in a safer (regulated) environment.
While the regulatory treatment of ICOs remains in a state of flux around the world and the status of token sellers is tenuous, Tech Bureau says it “aims to adhere to high regulatory standards, taking the lead in adopting global ICO practices, thereby making COMSA an exemplary cryptocurrency exchange business.”
Background
In response to the nationwide cryptocurrency rush, the FSA formed the Cryptocurrency Monitoring Team to review applications centrally, as well as monitor activities related to cryptocurrencies and tokens.
In October 2017, it released a memo entitled “Initial Coin Offerings (ICOs) – User and business operator warning about the risks of ICOs”, specifically calling attention to the potential applicability of Securities regulations to a specific type of “ICO token” that meets the definition of “Securities” under the Financial Instruments and Exchange Act of Japan.
Following the FSA’s public communication, the Japan Cryptocurrency Business Association, a self-regulating organization with registered cryptocurrency exchange service providers as regular members, released December 2017 a position paper (in Japanese) entitled “Guidance on Initial Coin Offerings,” in which it acknowledges that utility tokens are generally deemed to be cryptocurrency under the Payment Services Act of Japan.
Taking into consideration the evolving regulatory conditions surrounding ICOs, the Tech Bureau team said its “determined to strengthen its organization through reform, putting in place the necessary governance structure and internal policies, and turning COMSA’s ICO Platform into a regulated business that can offer cryptocurrency exchange services.”