JSTOA Releases New Guidance For Electronic Payments And Customer’s Asset Management
Japan’s Security Token Offering Association (JSTOA) released its revisions on the Financial Instruments and Exchanges Act, expected to come into effect come May 1st, 2020. The new revisions include articles of incorporation, business rules and self-regulation laws on the overall transfer and storage of electronic payments and its separation from customer assets.
According to a report released on its official website, JSTOA claims the new rules come in light of the latest amendments on the Financial Instruments and Exchange Act (FIEA) governing the country’s financial arena. The Act was passed by the House of Representatives earlier in the year and is to come into effect starting next month.
“The Association plans to apply for the certification of the Certified Financial Instruments and Exchange Business Association, which is stipulated in Article 78, Paragraph 1 of the Financial Instruments and Exchange Act.”
In a general meeting held by the board of directors and employees, the Association set out articles of incorporation on how custodial firms manage customers’ funds, rules for transactions such as electronic record transfer rights and auditing rules.
The Association also aims at curbing fraud in the digital payment field –especially to vulnerable customers such as the elderly.
Japan fastens its efforts in blockchain
Japan’s financial regulator, Financial Service Agency (FSA), is increasing its efforts towards a more safe and innovative blockchain space in the country. Earlier this month, the FSA announced the launch of the Blockchain Governance Initiative Network (BGIN) during the “BG2C – Special Online Broadcasting Panel Discussion, in partnership with the Nikkei company.
The network will serve as an archive for academic research and development on distributed ledgers creating a common language that will enhance interaction and sharing of perspectives amongst network stakeholders.