The Japan Financial Services Agency (FSA) has announced that the ban on domestic distribution of stablecoin assets issued abroad will be lifted in 2023.
government of Japan cryptocurrency has been trying to regulate trade for about five years. On the other hand, regulations on stablecoin supply have been the subject of a more recent period.
Parliament in June stablecoin limited its supply to licensed banks, registered brokers, and trusted companies in Japan. The main reason for this limitation was that the rate of adoption increased faster than expected, paving the way for potential problems.
The bill for stablecoins was quickly developed due to the Terra ecosystem that collapsed in May.
According to the “Revised Payment Services Act” that came into effect in May 2021, the regulations decided to implement new regulations in the crypto market regarding stablecoins.
Among the guidelines provided under the Revised Payment Services Act, it was stated that when the bill is implemented, local stablecoin issuers will be required to prepare collateral assets. In addition, as stated in the previous bill, issuers were restricted to “banks, fund transfer service providers and trust companies”.
Also, there is a requirement for distributors in Japan to protect their assets while considering stablecoins issued abroad. Also, according to the bill, the remittance cap is required to be 1 million yen per transaction.
While the specific target of overseas stablecoins is unknown, USDC encompasses assets like USDT, according to reporter Colin Wu’s tweet.
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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.