Key Takeaways
JCBA (Japan Cryptocurrency Business Association) submits preliminary proposal for IEO (Initial Exchange Offering) regulatory reform to JVCEA (Japan Virtual Currency Exchange Association).
The proposal outlines 4 key agendas aimed toward stabilizing the IEO market.
The reform goals to reinforce person safety and promote home IEOs over international exchanges.
Introduction
The Japan Cryptocurrency Business Association (JCBA), headquartered in Chiyoda, Tokyo and led by President Hiroshi Hirosue, introduced the submission of an preliminary proposal for the reform of the IEO (Initial Exchange Offering) system. The proposal was developed by the ICO & IEO Subcommittee, chaired by Seihiro Yoshida, and submitted to the Japan Virtual Currency Exchange Association (JVCEA), led by President Genki Oda.
Background and Current Issues
Since May of this yr, the ICO & IEO Subcommittee has been actively discussing the way forward for the IEO system, leveraging insights from numerous companies concerned in cryptocurrency and Web3. The proposal consolidates these discussions and has been submitted to JVCEA, a self-regulatory physique for cryptocurrency exchanges and associated spinoff buying and selling.
Four Agendas for IEO Reform
The proposal outlines 4 key agendas for reform:
Price Determination: Diversification of pricing strategies and specific warnings about pricing.
Liquidity: Setting liquidity targets on the time of itemizing and guaranteeing a conducive setting for liquidity.
Price Stability: Establishing guidelines for value stabilization measures on the time of itemizing.
Sale Restrictions: Formalizing and tightening lock-up rules for issuers and underwriting exchanges.
Future Directions
The proposal is an preliminary draft mentioned solely inside the JCBA. Future discussions will contain numerous stakeholders and concentrate on the feasibility of implementing these reforms inside the scope of self-regulatory guidelines.
The reform goals to encourage customers to handle their belongings beneath Japanese rules slightly than utilizing international exchanges, thereby enhancing person safety.
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