- Japan became one of the first large countries in the world to prepare a legal framework for stablecoins.
- Stablecoins backed by Japan’s fiat Yen or any other legal tender to allow holders to employ it at face value.
- Japanese Financial Services Agency could reverse the ban on circulation of stablecoins like USDT Tether and USDC.
The Japanese government approved a bill that recognizes stablecoins as digital money. The country has become one of the first in the world to establish a legal framework for stablecoins. The bill did not comment on stablecoins backed by cryptocurrencies and assets like Tether.
Also read: Bitcoin and stablecoin whales scoop up BTC, USDT, BUSD and DAI: Recipe for crypto Santa Claus rally
Japan to lift ban on stablecoins like USDT Tether and USDC in 2023
Japan is set to lift the ban on stablecoins according to a recent development by the Japanese Financial Services Agency. The FSA is keen on reversing a ban on domestic distribution of stablecoins issued overseas, in 2023. The report highlights that the remittance limit will be set at 1 million yen, approximately $7,500 per transaction.
Exchanges in Japan that wish to list cryptocurrencies get them evaluated by the Japan Virtual and Crypto assets Exchange Association [JVCEA]. About 50 cryptocurrencies have been cleared for trade in Japan. Exchanges will be allowed to list new tokens within 30 days of presenting their listing plan to the JVCEA.
The wait time will be shortened to two weeks starting April 2023. Genki Oda, Vice Chairman of the JVCEA told Bloomberg,
We hope the latest measure will help revitalize Japan’s crypto assets market.
The pre-screening process could be eliminated entirely by March 2024.
Japan’s move could make it a crypto hub
The Japanese Financial Services Agency could therefore reverse the ban on stablecoins like Tether (USDT) and USD Circle (USDC). For domestically issued stablecoins, issuers will have to put together collateral assets. Banks, fund transfer service providers and trust companies can issue stablecoins backed by the Japanese Yen or other fiat currencies.
The FSA will mandate stablecoin distributors to record information as an anti-money laundering measure. Japan recently expressed a keen interest in expanding into the NFT and metaverse space. The government is looking at easing crypto tax rules to embrace digital assets and their use in the economy.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Arbitrum’s ARB price rallies after Chainlink CCIP mainnet launch
The protocol’s arrival on Arbitrum is key to the further development and growth in the ARB ecosystem as it is expected to improve the user experience and attract developers.
BTC downside likely after 20-week EMA culls bulls
Bitcoin (BTC) bearish price fractal, as discussed in a previous article, is underway, but the lack of volatility is causing ambiguity and doubt. Regardless, BTC might see a bit of an upside before the long-term bearish scenario plays out.
FTX fights to clawback $157 million from former employees while creditors struggle with $7.9 billion in claims
FTX exchange has sued former employees of Salameda, a Hong Kong based entity affiliated with the trading platform. The court filing shows that the bankrupt exchange seeks to recover $157.3 million from Salameda employees.
First Ethereum futures ETF expecting approval by October 2
The first Ethereum futures ETF (exchange-traded fund) is likely to be approved on October 2, according to crypto hedge funder Hal Press. The North Rock Digital founder’s thesis is based on the recent events in the crypto ecosystem.
Bitcoin: BTC downside likely after 20-week EMA culls bulls
Bitcoin (BTC) bearish price fractal, as discussed in a previous article, is underway, but the lack of volatility is causing ambiguity and doubt. Regardless, BTC might see a bit of an upside before the long-term bearish scenario plays out.