Japan Financial Services Agency: Considering setting investment limits for IEOs and planning to regulate risk management in lending activities

According to CoinPost, the Financial Services Agency of Japan held the fifth meeting of the Financial System Council's Cryptocurrency System Working Group, where participants discussed strengthening the regulation of cryptocurrency lending businesses.

The new policy will require companies to establish risk management systems for borrowers and pledge contractors, create secure cryptocurrency asset storage management systems, explain risks to customers, and regulate advertising. Private lending, such as transactions between institutional investors, will not be regulated. The meeting also proposed a suggestion to introduce a cap on IEO investment to prevent issuers from raising funds from a wide range of ordinary investors in IEOs (Initial Exchange Offerings) without financial audits, which could lead to over-investment due to sales pressure.