China ICO Ban Sparks Startups’ Exodus to Japan for Token Listings
Japan’s largest bitcoin exchange Coincheck has been getting “countless orders” from Chinese startups to list their descendants after China’s blanket ICO ban.
Tokyo-based Coincheck, Japan’s biggest bitcoin exchange by trading volume, is being inundated with requests from Chinese companies for token listings on its exchange. First coin offerings, or ICOs, are a radical new form of fundraising wherein companies market crypto tokens to investors in exchange for funds via cryptocurrencies, typically bitcoin or ethereum’s ether.
Speaking to Chinese publication Global Times, Coincheck’s head of Global business development Kagayaki Kawabata stated:
We are receiving hundreds of requests from Chinese startups and startups around the world asking us to list their tokens after the Chinese government banned ICOs.
According to BMI in early September, China issued a ban on all ICOs after deeming them an illegal form of fundraising. South Korea followed China’s case in issuing a similar sweeping ban on all ICO-related action in the country. On exactly the identical day, Japan’s financial regulator allowed licenses for 11 bitcoin trades to operate in the nation, in which bitcoin is known as legal tender.
Japan’s regulated climate is far more demanding for bitcoin and cryptocurrency startups, Kawabata claimed.
The Japanese bitcoin executive added:
If Chinese tokens can meet the criteria that exchanges will set, Japan will be a great place to list tokens.
Coincheck’s primary executive separately added that the market is inspecting the new flurry of orders while being ‘very careful’ about accepting them. “Thorough due diligence is vital to be sure if the ICO is dependable,” he added while showing that the exchange is working on a clear set of criteria and guidelines for record new tokens on its own exchange.
Data from Cryptocompare reveals Japanese markets overseeing almost 60% of the worldwide bitcoin trading, demonstrating that the emergence and establishment of Japan as a significant bitcoin hub.
According to BraveNewCoin, Coincheck’s trading system processed nearly half of all bitcoin transactions in Japan over a 24-hour period.