Japan is responsible for 63 percent of total bitcoin trading. It is also home to lot of companies that do ICO but rumors are brewing that Japan could be next big country to ban ICO (initial coin offering). Company launches an ICO to raise funds from the public and it is touted as the best method to raise funds from the potential investors. Japan was the first country to support bitcoin as legal tender but the country is signaling to follow a different approach for ICOs.
Kogi Higash who is the co-founder of IndieSquare says that risk averse nature of Japan’s industries could result in ICO ban like China. Higash adds that crypto currencies need regulation and for that, Japan is no different. Regulators are keeping an eye on ongoing ICOs to see if they are good or bad.
A lot of fraud ICOs have caught the attention of the government, especially the ones with shady pyramid schemes. Start up investors buying crypto currencies at discount during ICOs and selling them off at higher price to non-ICO participants is also a thing to worry about.
If the Japan bans ICOs, it would be the biggest blow to the overall ICO market as Japan is often the biggest contributor in any popular ICO. Some think that banning ICO’s would only be good for crypto just look at bitcoin no ICO, no premine, just a community project. Good things are built slow not by throwing money at it. While other think that running ICO is a good possibility for the business to start and improve. But the amount of scam is a real problem. I think that it is wise to invest in ICOs of companies with the strong team, project and firm background like TenX and OmiseGo.
October 23, 2017
| Bitcoin News