[NEWS] JCBA considers restricting sales when cryptocurrencies are listed to prevent price crash

It has been learned that the Japan Cryptocurrency Business Association (JCBA) plans to establish trading rules for crypto assets (virtual currencies). The Nihon Keizai Shimbun reported on the 30th.

The reason behind JCBA's decision to establish trading rules is to prevent a price crash immediately after crypto assets are listed. Although details have not been released at this time, it is expected that the company will clarify procedures for setting sales restrictions for existing investors and operations such as buying support, with reference to the stock market.

For projects that have carried out IEOs, developers and founders will be subject to a minimum of three months of sales restrictions in principle, and a monthly sales limit of 10% of the shares of the offered amount will be set.

In addition, restrictions will be tightened even more than before, such as prohibiting the transfer or lending of restricted crypto assets to third parties in principle.

An IEO is a method of raising funds using crypto assets, in which cryptocurrency exchanges review projects and sell them. Several IEOs have been carried out in Japan so far, but some have crashed immediately after listing and fell below the public offering price. In order to improve this situation, some changes have finally been made.

According to reports, the JCBA will work with the JVCEA (Japan Cryptocurrency Exchange Association) to formulate rules.

Source:Report
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