What Japan’s Adjusted Regulations Mean for Stablecoins
The Financial Services Agency of Japan confirmed it would lift the ban on the domestic use of foreign stablecoins in 2023. However, there is no information on which stablecoins will be allowed. The new bill, which will permit the trade of stablecoins, is expected to be implemented by June 2023. This comes a year after the decision to ban foreign stablecoins. In June 2022, Japan’s parliament passed legislation prohibiting foreign stablecoins and mandating that stablecoin issuers only link their cryptocurrencies to the Japanese yen or another recognized legal tender. Perhaps influenced by the measures, crypto exchanges Kraken and Coinbase have since elected to cease operations in Japan, citing weak market conditions. The Japanese Regulator’s new guidelines will require stablecoin issuers to pass individual checks for user protection before approval. These checks will ensure that foreign issuers comply with regulations in Japan and that underlying assets are properly safeguarded. Japan’s new stablecoin regulations are part of the proposed cabinet orders and cabinet office ordinances on the amendment to the Payment Services Act of 2022. Introduced in December 2022, the new rules aim to establish requirements for electronic payment instruments and develop the related registration procedures. The FSA will accept public comments regarding the Payment Services Act changes until January 31st, 2023. Per the statement, the law enforcement deadline is early June 2023. As a major player in the global crypto market, Japan’s decision to lift the ban on the domestic distribution of stablecoins is of great significance as it will shape the future of stablecoins in the country. The measure highlights the growing role of governments and regulatory bodies in the crypto market. They aim to establish clear regulations and guidelines for ensuring user protection and promoting stability in the industry. For additional information on Japan’s stablecoin regulations: For more on exchanges pulling operations in Japan:
Background on the Ban
FSA’s Stance on Stablecoins
"This does not mean that all foreign products of so-called ‘stablecoins’ will be allowed without any restriction," a spokesperson for Japan's FSA said in a statement. "FSA does not provide any opportunity to access such information before the decision is made,” the representative added.
On the Flipside
Why You Should Care
Japan to Revoke Ban on Foreign Stablecoins in 2023: Report – DailyCoin
Why Is Coinbase Pulling out of Japan? – DailyCoin
Read more: https://dailycoin.com/japan-adjusted-regulations-for-stablecoins/
Text source: DailyCoin.com
