Japan Financial Services Agency: Considering Setting IEO Investment Limits and Planning to Regulate Risk Management in Lending Businesses

On November 7, according to CoinPost, the Financial Services Agency of Japan held the fifth meeting of the Financial System Council's Working Group on Crypto Asset Systems, where participants discussed strengthening regulations on crypto asset lending businesses. The new policy will require companies to establish risk management systems for sub-lenders and staking contractors, set up secure crypto asset storage management systems, explain risks to customers, and regulate advertising and publicity. Non-public lending, such as transactions between institutional investors, will not be regulated. The meeting also put forward a proposal to introduce an investment cap for IEOs, aiming to prevent excessive investment caused by sales pressure when issuers raise funds from a wide range of general investors in IEOs (Initial Exchange Offerings) that do not require financial audits.