On June 1, Sumitomo Mitsui Trust Bank, a subsidiary of Sumitomo Mitsui Trust Holdings (securities code: 8309), joined the Japan Security Token Offering Association, a self-regulatory organization for security token offerings (STO: financing through digital securities) formed by leading securities firms in Japan. Sumitomo Mitsui Trust Bank became the first trust bank to join the association.

On the same day, 14 companies, including bitFlyer and TaoTao, which are leading cryptocurrency exchanges, and Deloitte Tohmatsu Consulting, joined the association as supporting members.

Formed on October 1, 2019, the Japan Security Token Offering Association is a self-regulatory organization for STOs chaired by Yoshitaka Kitao, Chairman of SBI Holdings (securities code: 8473). Japan’s leading securities firms, including Nomura Securities, Daiwa Securities, Mizuho Securities, SMBC Nikko Securities, SBI SECURITIES, and Monex, and companies affiliated with mega bank groups are members of the association. With the participation of Sumitomo Mitsui Trust Bank, the number of full-members reached 10, increasing the number of major players.

In Japan, the amended Financial Instruments and Exchange Act was implemented on May 1. In line with the change, an STO was excluded from the definition of a cryptocurrency and has become subject to the Financial Instruments and Exchange Act. STOs are to be handled by Type I Financial Instruments Business Operators, such as securities firms.

*This article was written by FISCO.