Japanese FSA crypto legislation: Allowing stablecoins

Last Updated on 26 mins by John Piper

Japanese financial officials are reexaminating important cryptocurrency regulations, including Tether, USDC and USDC.

According to Nikkei, Japan’s Financial Services Agency will amend legislation next year to allow stablecoin circulation. The new stablecoin regulations for Japan will allow local exchanges to trade both domestic and foreign-issued stablecoins. This legislation change will be valid provided that cryptocurrencies are kept safe through deposits and that a maximum amount can be remitted. According to the news report stablecoins could be used to facilitate global payments. This idea is one that the Japanese FSA is open to exploring.

International remittances could become quicker and more affordable if stablecoin payments spread.

The FSA states that additional laws will be required to combat money laundering in order to allow stablecoin distribution to Japan. These laws will also include citizen and user commentary. The authorities started collecting comments about ideas to ease the Japan stablecoin restriction on Boxing Day.

The Japanese government has been hard at work developing legislation related to cryptocurrency. Japan’s Liberal Democratic Party tax committee approved a December proposal that would have exempted cryptocurrency businesses from having to pay taxes on tokens used for paper gains.

Japanense financial authorities enacted a law to ban non-banking institutions from issuing stablecoins in June 2022. This means that no local exchanges offer trading in stablecoins such as USDT and USDC. None of the FSA-registered exchanges are authorized to trade stablecoins. BitFlyer is one of Japan’s largest cryptocurrency exchanges. It trades five cryptocurrencies, including Bitcoin Cash, Ethereum, Bitcoin Cash and XRP. The recent changes in Japan’s legislation are likely to have a significant impact on the cryptocurrency trading services offered in Japan.

Coin Insider’s first article was entitled Japanese FSA Crypto Legislation: Allowing Stablecoins

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