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Is the ICO ban possible in Japan?

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Japan is a powerful platform in the market of crypto-currencies, where about 63% of the world market of bitcoins is traded. However, the ban on the initial sale of coins (ICO) by some Asian countries causes investors to worry about the fact that Japan can also direct efforts in this direction. ICO is a new, radical form of monetary financing. Companies raise funds in the form of a crypto currency by selling cryptographic tokens to investors. Currently, ICO is an innovative method for many companies, since it allows investors to more effectively use new technologies, in contrast to traditional shares.

Japan, which now recognizes Bitcoin as a legitimate means of payment, is one of the leading countries in the number of legal crypto-exchange exchanges. Japan's fundamentally different approach to crypto-currency positions Japan as the savior of ICO. According to Kagayaki Kawabata, head of the international development department of one of the largest Japanese stock exchanges, Coincheck, requests to add ICO tokens on its stock exchange increased after the ban in China.

Co-founder of IndiesSquare, Kogi Higashi, however, is not sure that Japan is a safe haven for ICO, as many believe. He believes that the conservative and risk-averse character of many industries in Japan can provoke this ban.

Bitcoin and other crypto currencies require regulation; this was the reason stated for the ban of ICO in China and South Korea. Japan, although it has a friendly approach to crypto currency, is not friendly to ICO, says Higashi. In addition, adding that regulators are monitoring whether it is good or bad, and can begin regulation in the future.

According to Forbes, Higashi is still optimistic that the ICO can turn into a revolutionary concept, giving Japan an advantage in attracting many ICO projects. Companies around the world are already moving projects to Switzerland and Japan, which will help both countries to receive tax revenue.

The flow of fraudulent ICOs that can enter the Japanese crypto currency market can give the government more and more grounds for imposing a ban. There is a possibility that ICO will switch from serious efforts to create digital currencies to risky pyramid schemes. Another worrisome trend is investors who buy coins at a discount to pre-seyel and deprive common investors to buy these coins. This scenario opens up the possibility for the exploitation of less technically savvy investors.

Japan plays a decisive role in the growth of the Crypto-currency and ICO markets, which largely contributed to the recent price increase. The ban can potentially limit the number of investors and crypto-exchange exchanges, reducing liquidity in the ICO market. This can increase volatility and lead to a drop in prices down.

Until recently, only a small number of investors with large orders were trading volumes in Japan. Now less technically savvy users around the world express an interest in this, which can increase the number of traders. The ban will generate a new crop of potential investors.

Despite the assumption, it is unlikely that the ban can enter into force, at least in the near future. Regulators closely followed the crypto-currency sector, demonstrating openness to learn about technologies and how to better regulate them. In addition, the growing appetite for the introduction of detachment by state and financial bodies is rapidly expanding.

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