Copyright 2018 SKILL Inc - SKILLCOIN
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Copyright ©2018 SKILL Inc.
SKILLCOIN White Paper Ver. 2.2
Table of Contents
1. Abstract
2. Background
3. Problem Statement
4. Solution
5. The Product
6. The Blockchain and the Merits of Using It
7. Use Case
8. Product Augmentation
9. Technology
10. Issued Quantity/Distribution of Tokens
11. Roadmap
12. The Team
13. Significant Issues
1
1. Abstract
SKILLCOIN is a token that uses blockchain technology to objectively validate
individuals’ skills and professional history, provide highly authenticated personnel
information, and solve the problem of mismatching employers and employees in the
personnel service industry.
The modes of operation of the personnel service industry can be generally divided
into classified job advertising, employment placement, labor dispatch, and subcontracting.
The global market for these four types of personnel services (centered on Japan, America,
and Europe) is estimated at between 366 and 465 billion U.S. dollars (four and five trillion
Japanese yen), and is only expected to expand with the development of emerging nations.
Each of these respective services faces the task of matching employees to the positions
businesses seek to fill, but skills mismatch between what businesses require and the actual
abilities of the people they ultimately hire has become a problem.
To place an applicant in a new job, current personnel placement and intermediate
agencies charge between thirty and thirty-five percent of the annual salary of the job
applicant, which amounts to an estimated market of 18.3 billion dollars a year (two trillion
Japanese yen a year). The business is structured so that the mediating agent is the central
authority that controls personnel data and so that it directly profits that agency to increase
personnel placement. As a result of this structure, it’s possible that a high rate of applicant
placement is prioritized over ensuring that the most suitable applicant is matched with a
given position.
Skills mismatch is currently a very large and inherent issue in the market. SKILLCOIN
uses the particular strengths of the “coin” to directly link businesses and job seekers by
offering them a decentralized personnel matching platform. With the SKILLCOIN platform,
the funds allocated for the fee which intermediate agencies traditionally take can be applied
to the direct relationship between employer and employee, allowing the business to discover
talent best suited for their needs at a lower cost, and allocate money to signing bonuses or
increasing base salaries.
The SKILLCOIN personnel matching platform service uses SKILLCOIN as the
method of payment for settling accounts, rewards, and system usage fees. Offering
additional services that use SKILLCOIN as their currency (such as a B/CtoC skill sharing
services, or educational platforms that aim to improve the skills of actual workers) creates an
2
ecosystem, increasing the token’s liquidity while raising skill standards and increasing
revenue for society as a whole.
2. Background
While the population of the global workforce continues to grow, the unemployment
rate and the number of unemployed individuals is expected to remain high, bringing
countries around the world face to face with a variety of challenges. According to the
International Labor Organization (ILO), we can expect a 2018 global unemployment rate of
5.5%, roughly unchanged from the 5.6% standard of the previous year, with a predicted
approximate total of 1,920,000,000 unemployed people worldwide, with unemployment
numbers overall moving at a sideways crawl.
The causes of unemployment can be broken down into three general categories.(*1)
● Decline in demand for labor due to recession at the macroeconomic level,
resulting in demand shortage unemployment.
● Mutual lack of information on the part of job seekers and employers as
individuals leave one position to seek another, resulting in frictional
unemployment.
● Disparity between the qualities employers seek in an employee and the
attributes and skills that job seekers possess, resulting in mismatch
unemployment
With no fundamental countermeasures for these underlying causes, nations can
expect the problem of high unemployment to continue. According to Okun’s Law, when
unemployment falls by 1%, GDP improves by 2%, meaning that ameliorating unemployment
rates would yield substantial economic effects. The IMF records the combined 2016 GDP of
the top ten major countries at 50,810,900,000,000 U.S dollars, so a hypothetical reduction of
1% in the overall unemployment rate could effect a GDP increase of 1,016,200,000,000
dollars.
3
3. Problem Statement
SKILLCOIN endeavours to solve the problem of skills mismatch in the global labor
market. According to the Hays Global Skill Index, a study that estimated and analysed the
personnel demand in the global labor market of thirty-one countries, conducted by the
foreign recruitment company Hays Specialist Recruitment Japan, the high indices for skills
mismatch in the principal countries have remained stably so for a number of years, indicating
that the problem has yet to be solved.
(Fig. 3.1)
Should “Skills Mismatch,” one of the three causes of laborer unemployment, become
a chronic issue, it could result in a labor/personnel shortage for businesses, and a major
issue for each country. With the global unemployment rate perpetually high, to achieve a
goal of dynamic economic growth, we must first resolve the problem of “Skills Mismatch.”
4
4. Solution
Skills Mismatch often results from the disparity between the value that the employer
expects in terms of the applicant’s skills, and the value that the job applicant reports when
applying. Because applicants report their own professional history and evaluate their own
skill levels, and intermediate agencies either cannot or do not sufficiently confirm what the
applicants report, the resulting information is often lacking in credibility. To do away with
mismatches resulting from this problem, a third party is required to check that the applicant’s
experience and abilities are accurately stated.
This project provides people who seek to objectively prove their skills, professional
experience, and qualifications with a personnel matching platform, that uses the functionality
packaged in SKILLCOIN to have a third party, well acquainted with the applicant,
authenticate that information.
5
5. Product
The product is divided into the core product and the expansion product, the latter
allowing for the practical application of the core product. The Core Product provides
individuals with the function that verifies their skills. The detailed procedure for verification
follows the five steps listed below.
1. User Registration
To use the service, individual user accounts are created in which the user registers
their identity and professional affiliations to their profile.
2. Skill Description
Users personally enter their current skills, most recent achievements, etc. (Exact
format still under development). Each entry and update adds information to the user’s
professional resume.
3. Request for Skill Validation
Users send a request to verify the entered skill information to a well-acquainted third
party (ex. former co-worker, etc). Notifications of verification requests will be sent via
email. In the event that individuals who receive requests are not yet registered with
the SKILLCOIN platform, they will also receive an invite to register via mail.
4. Approval of Skill Validation Request
Users who receive verification requests check the content of the requesting user’s
reported skills, and barring any issues, confirm them. In case of discrepancy, users
will also have the option to deny verification requests. After receiving verification
confirmation from two or more third parties, official verification is completed. It is not
possible to receive confirmation from the same user twice in a row.
5. Registry to the Blockchain
When the skill information is officially verified, hash value identify that data is
registered to the blockchain, along with the addresses of the verifying parties.
Figure 5.1 illustrates the organization of the process described above.
6
(Fig. 5.1)
7
6. The Blockchain and the Merits of Using It
The blockchain is a database that saves data by connecting units of data called
blocks, like links in a chain. Blocks can contain transaction information, contract information,
and more. The special advantage of the blockchain is that it allows for a distribution of
access to the information directly among users, preventing centralized control, making
falsification of data effectively impossible.
Our reasons for using the blockchain in our product are as follows. In the current
recruitment industry, a number of recruitment/job placement agencies manage job seekers
as clients, and by offering their clients to businesses, act as middleman between job seekers
and employers and receive a fee for intermediation. As it stands, there are therefore a
number of centrally-managed job placement platforms. This means that in order for job
seekers to field the best possible offers, they need to register with multiple agencies, and,
where necessary, undergo interviews with each agency in a complex and inefficient process.
Also, as mentioned previously, because applicants report their own skill set and professional
history, that information can be unreliable, leading to the discovery of mismatch after being
hired. In contrast, a decentralized skill verification platform using the blockchain is ideal
because:
・It changes the current centralized structure to a client-server architecture in which users
act to confirm one another.
・It produces an innovative organization system that removes the necessity of
intermediaries for personnel placement.
・It raises the level of authenticity of applicants’ stated professional history, and removes
incidences of false reporting.
8
(fig.6.1) 9
7. Use Case
Case 1. In Which a Potential Employer Overlooks an Ideal Candidate
Mr. A is an accomplished engineer with a high level of expertise. His achievements
and his reports are very well regarded within his company, and his work inspires confidence
from his coworkers and superiors alike.
Looking to advance further professionally, Mr. A has started to look for job
opportunities that will allow him to utilize his specialized expertise more fully. He believes in
his ability to put his skills to use for the benefit of a new employer, but he’s been unable to
effectively communicate that at job interviews, so he’s having difficulty finding one. His
reports do much to illustrate his know-how, but he can’t share them outside of his current
company, and he has no way to relay his professional accomplishments to potential
employers other than explaining them verbally, which is not his strong suit. The companies
who interview him may seek the skills and knowledge that he possess, and would be best
served by hiring him, but they are unable to ascertain that from a short verbal interview.
In this case, despite the fact that the job seeker’s skills are a good match for the
employer’s needs, because the job seeker was unable to communicate that to the
employer’s interviewer, both sides missed out on the chance for a mutually beneficial hire. In
cases like this, using the core product previously outlined, Mr. A’s skills could be correctly
assessed, and the opportunity capitalized upon instead.
(Fig. 7.1)
10Case 2.In Which the Job Applicant Exaggerates Abilities
Mr. B is a designer who works domestically. Until now he’s designed posters,
newspaper advertisements, as well as pamphlets, book and magazine covers which have
been well received by the advertising agencies or publishing houses that commissioned him.
Mr. B wants to find a position in which his design work will reach more people, so
he’s using a job placement service to start looking for a change of employer. During his
interview with the job agent, he discussed his previous design work and the kind of projects
he hopes to undertake in the future, and he exaggerated his business level foreign language
proficiency and his dream to someday use it in design work for foreign markets. After
consulting with multiple recruitment agencies, Mr. B found a company that fulfilled his
desired conditions. The company, with plans for international expansion, was urgently
seeking to secure contracts with employees who were able to work overseas. They
appraised his prior design work highly, and upon hearing of his self-reported
accomplishments and his language ability from the intermediary, they judged him an optimal
candidate for their overseas expansion and decided to hire him.
But when they actually set him in charge of projects, his designs failed to elicit a
positive response from the foreign clients. In truth, Mr. B’s language ability wasn’t enough to
properly understand the client’s intentions, and he was unable to sufficiently demonstrate the
language and design abilities that had been his strongest selling points as a hire. Because
they had hired him as a key figure in their overseas expansion, the effect on the business
was non-negligible. And due to the gap between his dreams and the results he was able to
produce, Mr. B suffered a loss of self-confidence as well.
In this case, because job placement was carried out through a recruitment agency for
job placement, the lack of performance ability on the part of the job seeker went unnoticed
and lead to a mismatch between the level of skill that the employer sought and the actual
level that the applicant possessed. In cases like this, if the core product had been used, Mr.
B’s skills would have been accurately reflected, and the mismatch could have been
recognized early on.
11(Fig. 7.2)
Instead of relying solely on the self-reporting of the applicants, as in the above cases,
using the objective and highly reliable information on the SKILLCOIN platform prevents the
occurrence of mismatch.
128. Product Augmentation
Using the blockchain to verify individual skill is the core value of SKILLCOIN. The
particular strength of this coin is its abundant potential for augmentation, including the
development of sharing economies, personnel matching services, and any number of
platforms that make use of it’s skill information.
8.1 SKILLCOIN as the Settlement Currency for B/CtoC Skill Sharing
It’s possible to construct a platform in which SKILLCOIN can be expended as
currency to commission/compensate individual users for work. After both client and
employee register as platform users, requesting and accepting work can be carried out in the
manner laid out below. The agreement between client and employee will also be recorded to
the platform, and upon completion of the work, the results will be recognized on the platform,
as a “skill” on the employed user’s profile.
【Client】
（１）User Registration (Linked with the Core Product)
（２）Input Request for Work (Contracted Work Details, Offered Compensation, Deadline,
Conditions of Acceptance)
（３）Notification of Bidding to Fulfil the Work Request
（４）Negotiation of Details with Bidders, Official Request for Work Once Desired
Contract Arrangement is Met (At this stage, the funds for compensation of the Work Request
will be pooled in the platform wallet)
（５）Completion of Work, Sending of Contracted Employee Perfomance Evaluation
(At this stage, the funds pooled in the platform wallet will be sent to the Contracted
Employee.
Option to request return of the payment, if the Conditions of Acceptance/Contract have not
been met.)
13【Contracted Employee】
（１）User Registration (Linked with the Core Product)
（２）Input Work Availability to the Platform
（３）Send Work Request to the Platform
（４）Receive Notification of Open Work Requests in Applicable Categories
（５）Negotiation with Client, Official Acceptance of Work Once Desired Contract
Arrangement is Met
（６）Delivery of Contracted Product or Service, Sending Evaluation of Client, Receiving
Compensation
(Fig. 8.1)
148.2 Tutorial Platforms to Improve Skills
SKILLCOIN can be used to construct educational platforms that help users upgrade
their skills by presenting lectures, or allowing users to take lessons. After registering as
users, individuals who want to hold a skill improving lecture can follow the following
procedure to do so. After the lecture, attendees can evaluate its utility, a record of which will
be registered to the platform as the lecturer’s “skill.” Students will also have the record of
their attendance recorded to the platform as one of their “skills.”
【Lecturer】
（１）User Registration (Linked with the Core Product)
（２）Input Lecture Details (Subject, Method, Cost, Schedule, Capacity, etc)
（３）Receive Notification of Attendance
（４）Hold Lecture
（５）Receive Compensation
(Fig. 8.2)
8.3 Personnel Matching Service Using Skill Verification Functionality
As a result of using the skill verification functionality embedded in the blockchain,
information about verified skills will accumulate on the decentralized blockchain network.
This information can be used as the basis of a direct connection between individuals and
businesses as a personnel matching platform.
As a result of operating a SKILLCOIN matching platform, the funds traditionally
collected by intermediate agencies as intermediation fees can be applied directly to the
relationship between employer and employee, allowing the business to discover talent best
15suited to their needs at a lower cost, while still allowing for signing bonuses and higher base
salaries for new hires.
In addition, by using SKILLCOIN as the method of payment for settlement, rewards,
and usage fees, the liquidity of SKILLCOIN is improved.
This kind of innovative personnel matching platform could revolutionize the existing
personnel service industry, and alter the industrial structure as illustrated in the figures
below. The estimated market value of the intermediation fee for the job placement industry is
between 30 and 35% of the job applicants yearly salary, for a total yearly market scale of
18.3 billion dollars r (two trillion Japanese yen a year). It’s this market that SKILLCOIN is
targeting.
(Fig. 8.3.1)
(Fig. 8.3.2)
169. Technology
SKILLCOIN is an ERC223 standard token operating on the Ethereum network. In the
SKILLCOIN based Skill Validation System, when accounts are created and when validation
requests are confirmed, reward tokens are issued and conferred. The number of tokens
issued and conferred N is calculated using the expected upper limit of tokens issued and the
number of tokens already in circulation, as per the following formula.
t
N = k · N (0) e τ
τ：Upper limit of tokens issued
t：Number of tokens already issued
k：Scale Factor
e：Napier’s constant
k is the scale factor, set according to the level of reliability of the user, acquired by
the number of tokens in their possession as well as their use of the service. The algorithm
that will set k will be examined and fine-tuned to fit the design of the service as it moves
forward.
As detailed above, token can be obtained through use of the service, and the
algorithm to set the number of tokens gained based on token retention or level of reliability is
similar to the Proof of Importance algorithm (PoI). This structure provides incentive to retain
a larger number of tokens, to retain tokens long term, and is expected to arrest selling
pressure to ensure a sustained appreciation of market value.
1710. Issued Quantity/Distribution of Tokens
When the upper limit of tokens issued is 30 billion tokens, the distribution can be
broken down as follows: 30% development expenses, 10% operating expenses, 25% initial
circulation, 25% yet-to-be issued, 10% project member incentive. Development costs include
design and development of the token and of the services that use the token. Operating
expenses consist of items like server costs and all of the miscellaneous costs incurred
during administration. Initial circulation tokens include tokens that are to be distributed in
exchange or distributed via promotion. The as yet unissued 25% is expected to be issued to
future users of the service. In order to provide unfailing incentivization for the continued
development of the project, while keeping the effect on the market value of the tokens to a
bare minimum, the percentage allotted for distribution to project members has been set at
10%.
(Fig. 10.1)
1811. Roadmap
● 2018
○ Release White Paper
○ Cryptocurrency Exchange Listing
○ Open Website
○ Develop alpha version.
○ Select partners for test the service.
○ Test start of alpha version with partners.
● 2019
○ Delevep beta version.
○ Test start beta version.
○ Release closed beta version.
○ Design Personnel Matching Service.
○ Develop Personnel Matching Service.
○ Release the service.
● 2020
○ Design skill share platform.
○ Business development for Personnel Matching Service.
○ And more..
1912.Team
CEO Tomokazu Mizutani
Tomokazu Mizutani is the Founder and CEO of SKILL Inc. He joined NEC
in 2000. He widely experienced such as portal site development, search
engine development and launching many new businesses. He joined an IT
Company listed on the First Section of the Tokyo Stock Exchange. in
2013. and helped multiple services as UX designer. He became project
leader in its new business department and launched several new services.
He works on training people as a division manager as well.
CTO Yuta Tasaka
Yuta Tasaka is Chief Technology Officer at SKILL Inc., he leads the
development of the technology strategies. He started his career at a
venture company as a engineer and has experienced in for services
development including medical system and web service for business. He
joined an IT Company listed on the First Section of the Tokyo Stock
Exchangein 2016 and is in charge of lead engineer with several services
in this new business department.
CPO Yoshikazu Oda
Yoshikazu Oda is chief product officer at SKILL, he leads this service and
platform. He joined Yahoo! Japan in 2006 as s software engineer and
helped build several functions for Yahoo! Mail and Ad networking system.
After studying English and business in Canada, joined an IT Company
listed on the First Section of the Tokyo Stock Exchangein 2010. He
experienced development nine social network games in Japanese and
also US market. And now he is taking part in the launch of a new business
as lead engineer.
In addition, we have other seven members including tax accountants, accountants, expert of
employment and so on.
2013. Additional Concerns
【Synopsis】
The SKILLCOIN team, with the goal of developing and providing services related to
cryptographic tokens, sales SKILLCOIN through exchanges.
SKILLCOIN are not intended to be treated as marketable securities of any country or region.
This white paper is not an invitation to investment in any country or region, and is in no way
a means of recruiting securities.
For those individuals, business, or organisations considering purchasing SKILLCOIN, we
ask that you first fully understand the risks, costs, demerits, and benefits, and where
necessary, take personal responsibility when it comes to seeking the advice of a specialist.
In the event that you can’t see fit to undertake the risks associated with the purchase of
SKILLCOIN stated in this white paper, or if you feel that you don’t understand the risks as
stated, we ask that you refrain from purchasing SKILLCOIN.
Also, please pay special attention to the fact that once you have purchased SKILLCOIN, you
will not be able to receive a refund for the value of the SKILLCOIN you have purchased.
【Requirements for SKILLCOIN Purchasers】
Persons with nationality from a nation that has either outlawed the purchase of SKILLCOIN
or similar cryptographic tokens or consider it a violation of the law, as well as residents of
such regions can not purchase SKILLCOIN.
Only individuals with a sufficient level of experience and comprehension about the
complicated nature of cryptographic tokens and their use, as well as software systems
based on blockchain technology will be able to purchase SKILLCOIN.
SKILLCOIN development team members and those involved in the issuing of tokens do not
bear any responsibility for any kinds of loss incurred due to the actions of SKILLCOIN
purchasers, be it loss of SKILLCOIN, other cryptographic tokens, cryptocurrency, or legal
tender.
21【Risks】
The purchase of SKILLCOIN comes with certain risks. If you would like to purchase
SKILLCOIN, please first consider the risks listed below, consult with qualified experts, and
decide whether or not you are willing to accept personal responsibility for the purchase.
１.Risks associated with Project Development
Because “SKILLCOIN” are part of a project currently undergoing development, there is a
possibility of failure during the development stage and of the project failing to meet exact
expectations even after completing development.
２.Risk of Bankruptcy
As with other systems of cryptographic token publication, there is a risk that the SKILLCOIN
team will experience future financial difficulty resulting in bankruptcy. SILLCOIN are not
publicly traded securities or securities of any other kind, so in the case of bankruptcy or
liquidation, there will be no distribution of residual assets to SKILLCOIN holders.
３.Risks Associated with Service Continuity
In the case of liquidation, there is a possibility that businesses handling services in which
SKILLCOIN are used might sell those services to a third party. In that case, there is a risk
that existing SKILLCOIN will no longer be valid for use with those services.
４.Risk of Bugs, etc.
There is a risk of a bug in the SKILLCOIN system. The SKILLCOIN team works tirelessly to
anticipate and deal with the future discovery of a bug in this token, but there remains a
possibility that due to future hacking or other unforeseen circumstance that it becomes
difficult to properly manage SKILLCOIN. In that event, the SKILLCOIN team may decide to
implement a hard fork.
22【Disclaimers】
The SKILLCOIN team and the development team do not accept responsibility for any
instances of indirect, special, incidental, and consequential damages nor other damages
incurred due to reader’s understanding of the contents of this white paper or any related
matters This includes but is not limited to responsibility for illegal activity, contractual liability,
and responsibilities of other legal nature.
SKILLCOIN purchasers acknowledge that the SKILLCOIN team offers no guarantee that the
SKILLCOIN currently under development will reach completion. SKILLCOIN purchasers
acknowledge that the SKILLCOIN team bears no responsibility for loss or damages resulting
from the failure of SKILLCOIN to reach completion or a stage of utilization.
Additionally, in the event that SKILLCOIN achieve development completion, we do not
guarantee that SKILLCOIN will outperform other services. As with other services, please
consider this information in reference transactions.
The regulating authorities of countries worldwide are cautiously observing business related
to cryptographic tokens. SKILLCOIN purchasers acknowledge that the SKILLCOIN team
bears no responsibility for losses or damages incurred due to changes in or introduction of
national or regional laws that affect SKILLCOIN.
The SKILLCOIN team as a group is not a guarantor that all the services stated in this white
paper is to be achieved, and does not confer any kind of warranty nor offer any disclaimer to
anyone.
【Modifications, Additions, or Deletion of Contents】
The SKILLCOIN team reserves the right to alter, revise, add, or delete portions or conditions
of this white paper. Buy purchasing SKILLCOIN, purchasers grant permission for said
changes. If you have objections about any portion or condition of this white paper, please
refrain from purchasing.
23【Buyers Declaration】
By participating in SKILLCOIN purchasing, purchases declare the following:
（１）SKILLCOIN purchaser is able to purchase SKILLCOIN according to the laws of the
country or region of their residence.
（２）SKILLCOIN purchaser accepts responsibility for determining whether or not it is
approriate that they purchase SKILLCOIN.
（３）SKILLCOIN purchaser is not purchasing SKILLCOIN on behalf of a third party.
（４）SKILLCOIN urchaser has sufficiently consider the risks, costs, and other demerits
associated with purchasing SKILLCOIN, and comprehends them.
（５）SKILLCOIN purchaser is not purchasing SKILLCOIN for speculative purposes.
（６）SKILLCOIN purchaser agrees and understands that SKILLCOIN are not in any way
marketable securities in any country or region.
（７）SKILLCOIN purchaser agrees and understands that this white paper is in no way a
document for the purpose of recruiting applications, in no way does it constitute an offer of
securities in the purchaser’s country or region of residence, and that is not an invitation to to
invest in marketable securities.
（８）SKILLCOIN purchaser possesses sufficient understanding of the use, function,
saving, and transfer mechanisms and other important features of cryptocurrency, blockchain
based software systems, cryptocurrency wallet, as well as token savings mechanisms, and
blockchain technology.
（９）SKILLCOIN token purchaser acknowledges and understands the risks associated
with the business management of the SKILLCOIN team.
（１０）SKILLCOIN token purchaser acknowledges and understands that the SKILLCOIN
team does not accept responsibility for any instances of indirect, special, incidental, or
24consequential damages nor other damages incurred due to reader’s understanding of the
contents of this white paper or any related matters, including but not limited to responsibility
for illegal activity, contractual liability, and responsibilities of other legal nature.
（１１）SKILLCOIN token purchaser declares that from the time of the reading of this white
paper, the above declarations, (１) through (１０) are truthful, accurate, complete, and do
not invite misunderstanding.
【Legality ＵＫ・ＪＰ・ＥＵ】
Regulations pertaining to Initial Coin Offerings (ICO) are rapidly changing in countries
around the world, but as of the end of December 2017, can be generally summarized as
follows.
In addition, the contents published here are based on the respective regulatory authorities’
announced guidelines and do not include the decisions of non-government organizations.
Because legal interpretations and regulations are fluid, and can be expected to undergo
successive changes, individuals decided to participate in Initial Coin Offerings or individuals
associated with ICOs should not base their personal decisions solely on the information
herein, but please consider it instead as a mere reference.
The United Kingdom/England:
The English FCA’s stance on businesses related to Cryptocurrency and digital currency can
be described as focused on consumer protection, AML, and strengthening cooperation with
25the regulations of other countries. They strongly encourage those related to ICOs to
implement KYC processes.
１.With regard to consumer protection, the FCA has expressed clear opinions and
guidelines, and indicates that investment in ICOs is accompanied by a high degree of risk.
However there is currently no obligation for businesses involved in implementing ICOs to
register or receive licensing or approval from the FCA. Historically, the FCA has honored
self-regulation, but while it has been left up to each related business to decide on its own
how to interpret the FCA regulations, the British FCA strongly recommends carefully
weighing the pros and cons of ICOs.
２.AML is the FCA’s most pressing concern. As per 2007 money laundering regulations, the
FCA is strengthening demands for customer due diligence queries, Know your Customer,
and other reports. With regard to the HRMC, FCA, and legal circles, as with consumers, self
regulation is held in high esteem, but given current trends, it’s conceivable that some form of
multilateral international regulations will be introduced.
Japan:
With the enactment of a 2017 amendment to the Act on Financial Settlements, businesses
that carry out the exchange of virtual currency are required to register and provide
notifications to the Ministry of Finance Financial Bureau, but currently there are no executive
orders implementing concrete regulations in regard to the specifics of ICOs. However the
Financial Services Agency website contains the following warning for those associated with
ICOS and for token purchasers.
Because ICO token beneficiaries incur high risks owing to the abstruse and advance nature
of tokens as an investment, we take a similar position to that of the British FCA.
For more details, please refer to the below Financial Services Agency website.
http://www.fsa.go.jp/policy/virtual_currency/06.pdf
The European Union・Europe:
EU member nations’ regulations on cryptocurrency and digital businesses vary by country.
While there are currently no precise guidelines, Luxembourg and outside of the EU countries
26like Switzerland, have implemented notification systems, and are highly likely to strengthen
regulations in the future. With the implementation of electronic independence, and the
differing opinions between EU president nation Estonia and the European Central Bank as of
the latter half of the summer of 2017, the way the situation will develop moving forward is
uncertain.
Reference Information
・Cabinet Office, Unemployment Caused by Mismatch (*1)
http://www.esri.go.jp/jp/others/kanko_sbubble/analysis_06_03.pdf
・HAYS
http://www.hays-index.com/wp-content/uploads/2017/09/Hays-GSI-Report-2017.pdf
・International Monetary Fund
http://www.imf.org/external/index.htm
・International Labor Organization (ILO)
http://www.ilo.org/global/lang--en/index.htm
・Global Skill Index
https://www.hays.co.jp/global-skills-index/index.htm
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