Hong Kong, Friday, December 31, 2021 - Magic Circle announced that it has officially joined the Japan Security Token Association (JSTA), the first corporate association organization established in Japan in 2019 and dedicated to building a solid security token ecosystem.
Japan is a global leader in the field of security token in terms of regulations, technology and practice. In 2020, Japan clarified that security token are regulated under the Financial Instruments and Exchange Act (FIEA), and that the interests represented by security token are called " electronically recorded transferable rights"(ERTRs) and need to comply with the relevant regulations, as well as clarifying the registration license, transaction transfer and disclosure requirements. In April 2021, SBI Securities launched the first Japanese STO for general investors, and in November, a security token based on Japanese real estate income was listed and traded on the Singapore-licensed exchange ADDX, the first overseas listing of a Japanese security tokens. Mitsubishi UFJ Trust Bank announced that it will make its current security token issuance and management platform "Progmat" interface publicly available in mid-2022, enabling existing securities firms and banking institutions to access it directly for automated processing. In addition, SBI revealed that it plans to cooperate with Sumitomo Mitsui Financial Group(SMFG) to launch a security token exchange (Osaka Digital Exchange - ODX) in Osaka in 2023, to connect the issuance and secondary trading of the Japanese security token market and solve the problems of issuance efficiency and secondary liquidity. Moreover, Japanese investors have a high level of recognition for security token, with 9% of the security token media platform STM's subscription customers coming from Japan and the Japanese community of the US security token exchange INX having nearly 3,000 members.
JSTA, founded in May 2019 and headquartered in Tokyo, is an association dedicated to improving securing high quality of security token scheme and business ecosystem, in research, investigation and enlightenment activities on security token from technological, systematic and business perspectives. The association's members include, Tokai Tokyo Financial Holdings and ITOCHU Techno-Solutions Corporation (CTC), Tezos Japan, Softbank, etc. At the same time, JSTA commits to fairness and freedom of economic activities and stability of civil welfare, and furthermore growth of the Japanese society.
After two years of experience in practice, Magic Circle has expanded its global network of cooperation in the field of security token and is assisting a number of companies to issue their attractive security token in the U.S., as well as secondary market listing, etc. Magic Circle has gained solid experience in compliance issuance, designing issuance solutions, secondary listing, etc. By becoming a member of JSTA, Magic Circle hopes to be more involved in the development of the security token industry in Japan, share the company's experience in overseas markets to Japanese companies, and discuss with association members to promote the large-scale adoption of STOs in Japan. At the same time, Magic Circle also hopes to help more Japanese clients issue and trade security token in other compliant jurisdictions around the world.
Doer QU, CEO of Magic Circle, said, "We are honored to become a member of the JSTA. This is a recognition and encouragement of our achievements in the security token area. Japan has been an innovative country in the field of crypto finance, and we will share our experience and technical solutions in the issuance of security token with Japanese financial institutions and regulators to promote Japan's growth and leadership in the STO field. At the same time, meeting Japan's compliance requirements will further enhance the global applicability and compliance of Magic Circle's products. We hope to use our unique position in the JSTA to attract and help more companies raise capital through compliant issuance of security tokens, reinvent business models, and promote the global adoption of STOs."