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Source: Сointеlеgrаph

Japan’s new rules to allow investors to trade using stablecoins such as Tether (USDT) are expected to be passed no later than June 2023, according to the local financial authority.

The Financial Services Agency (FSA) of Japan is working to lift the ban on domestic distribution of stablecoins, with plans to allow some stablecoins later this year.

“This does not mean that all foreign products of so-called stablecoins will be allowed without any restrictions,” a spokesman for Japan’s FSA said in a statement to .

An FSA spokesman said the FSA will only allow stablecoins that successfully pass individual reviews, ensuring that such cryptocurrencies are safe from a user protection standpoint. Examples include that foreign issuers in their home countries are subject to similar rules in Japan, with the underlying assets being properly preserved, the spokesman added.

The authorities have also stressed that there is no chance of knowing if major stablecoins like Tether (USDT) or USD Coin (USDC) will be allowed. “The FSA does not provide any way to access such information before a decision is made,” the spokesman said.

Japan’s new rules on stablecoins are part of the proposed Cabinet Regulations and Cabinet Regulations to Amend the Payment Services Law of 2022. The new rules, introduced in December 2022, aim to establish requirements for electronic payment instruments and develop related registration procedures.

According to official data, the FSA will accept public comments on changes to the Payment Services Law until January 31, 2023.

“It is planned to be made public and put into effect through the necessary procedures after the close of public comment, so the exact date has not yet been determined,” an FSA spokesman said. The FSA noted that the deadline for law enforcement enforcement is set for early June.

Related: Japanese regulators want crypto to be treated like traditional banks

As previously reported, in June 2022, the Japanese Parliament passed the Foreign Stablecoin Ban Act, requiring stablecoin issuers to only peg such cryptocurrencies to the Japanese yen or other legal tender.

The new law, which is expected to come into force in 2023, appears to have affected many crypto companies as none of Japan’s 31 FSA-registered exchanges have offered stablecoin transactions since then. Some major crypto exchanges, including Coinbase and Kraken, have recently shut down operations in Japan, citing a weak crypto market.

Source: Сointеlеgrаph

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