Japanese Village to Launch Country's First Municipal ICO

Japanese Village to Launch Country’s First Municipal ICO

A Japanese village has announced that it is going to launch an ICO (Initial Coin Offering) to secure funds to create a sustainable region. This is the first time a municipality in Japan has decided to raise funds using a token sale.

Nishiawakura Village is located in the southern part of Honshu Island in Japan. Okayama Prefecture, the prefecture where the village is located, is known for its beautiful rural landscapes, art museums and galleries, and feudal castles. The population of the village is only 1,500, with 95% of the total area covered in forest. Back in 2000, the village refused to merge with a bigger city as it wanted to remain financially independent.

According to the announcement made by the municipality:

In order to promote the creation of a sustainable region in the future, as a means for small local governments to secure new financing resources and to build up regions through upfront investment, tokens issuance, and the creation of virtual currencies, we will introduce fundraising through an ICO for the first time as a municipality in Japan.

The Nishiawakura Village Token Economy Association has taken the responsibility to issue the coins and has decided to call it the Nishiawakura Coin (NAC). The village explained that these coins will also carry voting rights allowing its holders to take part in decision making for local ventures.

The municipality added:

The funds procured will carry out business development, etc. in collaboration with Nishiawakura Village, and will develop a sustainable community.

Currently, there are no specific laws dealing with ICOs in Japan, but the regulators have been discussing about a new regulatory framework for them. In February this year, the FSA (Financial Services Agency), Japan’s top financial regulator, issued warning to an ICO (Initial Coin Offering) conducting business in the country without a license.

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