05/04/2018: Biggest Stories in the Cryptosphere

1. Japan Publishes Guidance Report on Potential ICO Legislation

A study group backed by the Japanese government has published a guidance report providing a basic set of rules to follow in regards to ICOs. In the document, they are classified as securities. Topics covered include investors’ identities, money laundering prevention, projects’ development updates, and the safeguarding of the holders involved in the projects. As of now, this is just a proposal. However, depending on the outcome of Japan’s Financial Services Agency’s deliberation, it could become law in a couple of years. Mizuho Research Institute Researcher Kenji Harashima stated that by implementing the right set of regulations ICOs — which he called a “groundbreaking technology” — could become a new fundraising method.

2. South Africa’s Central Bank Is Evaluating Possible Cryptocurrency Regulations

The South African Reserve Bank (SARB), the country’s central bank, is assembling a unit focused on blockchain and cryptocurrencies. The unit would be used to oversee progress in the cryptocurrency and FinTech spheres. The results would then be used to develop a potential set of regulations. The unit is currently set to create a proof of concept (PoC) for DLT-based interbank clearing and settlement. We reported on the project, called Project Khoka, previously. The bank’s Banking Practice Director Bridget King stated that the initiative will allow a self-regulatory approach to this new phenomenon. The non-governmental self-regulatory organisation (SRO) would prevent risks without stopping these new technologies from flourish.

3. India’s Central Bank Is Considering Issuing a Digital Currency

The Reserve Bank of India, the country’s central bank, has put a ban on entities providing services to those dealing in digital currencies, with a three months implementation period. Guidelines will also be released soon. Despite the move, the central bank is still considering the possibility of issuing its own digital currency. RBI Deputy Governor BP Kanungo stated that in this case, it would be different, as the digital currency would be backed by the central bank and would be its liability. They would be put in circulation along with banknotes, helping to reduce the production cost of the latter, as fewer would be printed. Furthermore, blockchain technology will be adopted in the financial services industry to improve the sector’s inclusivity and transparency.

4. Coincheck Accepts Monex Takeover Proposal

We reported two days ago on Japanese brokerage firm Monex’s takeover proposal to crypto exchange Coincheck. It has now been disclosed by the news outlet Nikkei Asian Review that Coincheck is going to accept the offer. Monex’s COO Toshihiko Katsuya will become the new president. Management will be rearranged in an effort to gain back investors trust, and improve the exchange’s reputation. The acquisition still needs to be finalised, but more details are expected to be released on Friday. Founding President Koichiro Wada, and COO Yusuke Otsuka will both leave their positions at the company.

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