Japanese Financial Services Agency: Considering Establishing IEO Investment Cap, Aiming to Standardize Loan Business Risk Management

BlockBeats News, November 7th. According to CoinPost, the Japan Financial Services Agency held the fifth meeting of the Crypto Asset System Working Group of the Financial System Council. Participants discussed strengthening the regulation of cryptocurrency lending businesses. The new policy will require companies to establish a risk management system for borrowers and collateral providers, set up a secure cryptocurrency storage management system, explain risks to customers, and standardize advertising. Non-public lending, such as transactions between institutional investors, will not be regulated.

The meeting also proposed a recommendation to introduce a proposal for an IEO investment cap to prevent issuers from raising funds from a broad range of ordinary investors in IEOs (Initial Exchange Offerings) without the need for financial audits, which could lead to over-investment due to sales pressure.

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