ICO is a fund-raising method that has attracted attention since the emergence of crypto-assets (virtual currencies), and refers to a method of raising funds through the new issuance of crypto-assets. ICO are characterized by the fact that companies and other fund seekers can raise funds directly from general investors without going through stock exchanges.
On the other hand, "IEO" is similar to ICO in that it raises funds from general investors by issuing new crypto-assets, but the major difference is that it raises funds from general investors through a third party crypto-asset exchange service provider.
B) Current status of ICO and IEO in Japan
In Japan, if the tokens issued in an ICO classified as the category of crypto assets, the implementation of the ICO falls under the category of crypto asset exchange business and is subject to The Amended Payment Services Act.
Furthermore, until now, there have been no screening standards for the implementation of ICOs and IEOs, which are methods of selling new virtual currencies. However, guidelines enforced by the JVCEA in 2019 clarified the ICO/ECO screening criteria.