Six firms related to the brokerage industry, including Rakuten Securities, SBI Securities and the Monex Group, have recently decided to establish an association. Other companies such as Daiwa Securities, Kabu.com Securities and Nomura Securities have joined them to create the Japan Security Token Offering (STO) Association.
The new association is set to be headquartered in Tokyo and to support the launch of other STO-related initiatives. Another goal of the association is to ensure that all companies are working in full compliance with the law and to protect the investors, meaning that it will also work as a self-regulating agency.
Part of the reason why the companies decided to unite is that this kind of offering is getting popular in the country. In this case, it helps to create an organization that will oversee the market and is close to the regulators at all times.
The CEO of SBI Holdings, Yoshitaka Kitao, affirmed that the creation of this organization is a collaboration between these companies and that they will deal with most of the issues in the industry, as well as try to come up with solutions to issue and trade this kind of token legally.
In related news, Coinbase and Kraken, two giants of the U. S. market, are teaming up right now to create their own rating system, which will determine which tokens are securities or not. The initiative is not endorsed by the Security Exchange Commission (SEC), so it does not have any legal effect, though.