Key learning points
JCBA (Japan Cryptocurrency Business Association) submits an initial proposal for IEO (Initial Exchange Offer) regulatory reform to JVCEA (Japan Virtual Currency Exchange Association).
The proposal outlines four key agendas aimed at stabilizing the IEO market.
The reform aims to improve user protection and promote domestic IEOs over foreign exchanges.
Introduction
The Japan Cryptocurrency Business Association (JCBA), headquartered in Chiyoda, Tokyo and led by President Hiroshi Hirosue, announced the submission of a first proposal for the reform of the IEO (Initial Exchange Offer) system. The proposal was developed by the ICO & IEO Subcommittee, chaired by Seihiro Yoshida, and submitted to the Japan Virtual Currency Exchange Association (JVCEA), headed by President Genki Oda.
Background and current issues
Since May this year, the ICO & IEO Subcommittee has been actively discussing the future of the IEO system, drawing on insights from various companies involved in cryptocurrency and Web3. The proposal consolidates these discussions and has been submitted to JVCEA, a self-regulatory body for cryptocurrency exchanges and related derivatives trading.
Four agendas for IEO reform
The proposal outlines four key agendas for reform:
Pricing: Diversification of pricing methods and explicit warnings about pricing.
Liquidity: setting liquidity targets at the time of listing and ensuring a favorable environment for liquidity.
Price Stability: Establishment of rules for price stabilization measures at the time of listing.
Selling Restrictions: Formalizing and tightening lock-up rules for issuers and underwriting exchanges.
Future directions
The proposal is a first draft that will be discussed exclusively within the JCBA. Future discussions will involve different stakeholders and focus on the feasibility of implementing these reforms within the scope of the self-regulation rules.
The reform aims to encourage users to manage their assets according to Japanese regulations instead of using foreign exchange, thereby improving user protection.
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