Crowdfunding in Japan: Current Regulation and the Future of Business

Abstract

This paper surveys crowdfunding in Japan. After observing the history of crowdfunding in Japan, the paper categorizes crowdfunding services into several types. Each type of crowdfunding service is subject to different regulation framework with various regulatory purposes. The paper also provides a reflection on the future of crowdfunding business in Japan and its regulation. Specifically, the paper argues the effect of 2014 reform of Japanese securities regulation which has enabled equity crowdfunding platform business.

Keywords: Crowdfunding, financial regulation, investor protection

JEL Classification: G24, K22