Cryptocurrency and Securities and Possibilities in Regional Finance

Interaction between ICO and crowdfunding and social lending and the ideal regulatory framework

Abstract

In this paper, we examined the current situation of cryptocurrencies in Japan, discussed the discussions at the FSA's workshops, etc., examined the actions taken by the FSA to dispose of virtual currency-related businesses and revised the legal system. Later, we examined where the four types of ICOs fall under the “four functions of finance” by the Financial Services Agency regarding the socalled Initial Coin Offering (ICO) system. Based on the limitations of the current system, such as crowdfunding and social lending, which are similar to those of the ICO, we will present the conditions for securing the investment potential of the ICO from the practical aspects of the asset management industry in the securities and financial markets. At the same time, the ICO financing method is funded from the perspective of civil society. The necessary system development was examined, and alternatives to the continuation system were proposed. Finally, he introduced the contents of the bill that positions personal information in the United States as an object of ownership in the context of the legal nature of cryptocurrencies, and discussed some of the future implications in each area.