Stablecoin regulations may loosen in Japan for foreign tokens

Japan’s Financial Services Agency is expected to lift the ban on domestic distribution of stable coins created abroad in 2023.

According to coinpostAccording to the latest ‘Amended Payment Services Act’ new crypto rules will come into force soon.

Proposed rules for stablecoins

If the ban on foreign-issued stablecoins is lifted, the party responsible for the stablecoin in Japan will automatically be the distributor. According to the report, the distributor will handle the tokens instead of foreign issuers in order to protect their value.

Meanwhile, it is proposed to cap the maximum amount of remittances for such stable coins at 1 million yen, or $7,500 per transaction. However, it is unclear which stable coins will return to Japan. US-based Circle-issued USDC could be one of the stablecoins to enter Japan. lanyard (USDT), the largest stablecoinCould be any other player.

In contrast, for domestically minted stablecoins the issuer reissues. Issuer will need collateral assets security in this matter. Meanwhile, banks, trust corporations, and companies offering fund transfers will be the only permitted issuers in the stablecoin market.

BeInCrypto previously reported that the Japanese financial watchdog intends to classified Algorithmic Stable Coins in the Same Category Bitcoin, But, the Financial Services Agency has indicated that future rules on the category may be more stringent.

BeInCrypto could not independently verify the report.

New Year, New Crypto Regime

Apart from a few regions, the Japanese authorities have recently loosened the regulations governing the cryptocurrency market. This includes making it much easier for crypto exchanges to list digital currencies.

In November, Japan’s Digital Agency announced that it would form its own decentralized autonomous organization (dao) before its enactment legal status. The Japanese Ministry of Economy has also established a web3 office Dedicated to web3 policy only.

Web3 dApps development

Meanwhile, Binance has drawn up plans to return to the Japanese market. This comes a year after it exited the market following a warning by domestic regulators. In a fresh re-entry attempt, the largest exchange by volume could To earn Japanese crypto business Sakura Exchange Bitcoin. Meanwhile, Square Enix and crypto-heavyweight SBI exposure One more deal. The Tokyo Stock Exchange-listed gaming company and SBI entered into an M&A agreement in crypto gaming.

In addition to stablecoin regulations, Japan is promoting sustainable cooperation with the country’s crypto miners. Japanese utility Tokyo Electric Power (TEPCO) partnership with Equipment Manufacturer Triple-1 Willpower cryptocurrency mining With excess electricity on its grid.

Conversely, in terms of restrictions, changes to Japan’s Labor Standards Act also prohibit the use of virtual currencies. Digital Salary Transfer.

disclaimer

BeInCrypto has reached out to the company or the person involved in the story for an official statement regarding the recent development, but has yet to hear back.


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