On October 27, 2017, the Financial Services Agency of Japan ("FSA") released a statement on initial coin offerings: "Initial Coin Offerings (ICOs)—user and business operator warning about the risks of ICOs."

In its statement, the FSA clarified that ICOs may be regulated under Japanese law, including by the Payment Services Act and the Financial Instruments and Exchange Act. The FSA also emphasized that investors will need to fully understand the risks associated with ICOs and will be responsible for their ICO participation.