Almost as if reinforcing the point about constructive regulation, Japan’s Financial Services Authority published a statement yesterday on ICOs.

The brief statement (full statement in english here) warns interested investors of the risks of ICOs: price volatility and fraud potential. The FSA helpfully invites inquires via email.

“A certain token issued in an ICO falls under the virtual currency on the Payment Services Act, therefore the businesses which provide exchange services of virtual currencies on a regular basis must be registered with each Local Finance Bureau that is the delegated authority to the Prime Minister,”

In other words, cryptocurrency exchanges in Japan must be registered. On September 29, the Japanese authorities approved registration applications for 11 cryptocurrency exchanges. Barring a notorious scandal, I believe that the Japanese government will continue on its constructive path of measured regulation.