Japan intends to allow local investors to trade foreign stablecoins, such as USD Coin (USDC) or Tether (USDT), by the end of the second quarter of 2023 at the latest, TheFinancial Services Agency (FSA) reported.
Stablecoinsand Japanese Ban
However,the FSA is unlikely to allow all foreign stablecoins, and the final list is stillunknown. A spokesperson for the FSA told Cointelegraph that restrictionsmay still be imposed on some of them.
TheJapanese regulator will conduct its own compliance checks to confirm thatstablecoins will be safe for local users. Ultimately, the most popular ones couldnot be allowed to enter the market. However, Details on the matter have notbeen provided.
“TheFSA does not provide any opportunity to access such information before thedecision is made,” a spokesperson for the regulator said.
It wasfirst reported that Japan would loosen stablecoins regulations in late 2022. Atthe time, local media outlets suggested that the regulators would allow foreignstablecoin trading while maintaining a cap on remittances and assetpreservation by deposits.
Watch the recent FMLS22 panel on the current crypto winter.
JapanLoosens Stablecoin Regulations after Tightening Too Much
A billrestricting the issuance of foreign stablecoins was enacted in June 2022,requiring issuers to peg the tokens to the Japanese yen. The legislationis expected to finally go into effect in 2023, but it has already changed thepicture of the local cryptocurrency industry.
None of the31 FSA-registered cryptocurrency exchanges has since offered stablecoinoperations. In 2021, the FSA led the discussion on stronger industry regulation while preserving room for further development of cryptocurrency projects. Inthe case of the stablecoin market, the proposed regulatory changes have proved to betoo strict.
Moreimportantly, some exchanges, including Kraken and Coinbase, have decided toleave the country, explained by the weak cryptocurrency market. However, theloosening of regulations may encourage some players to return. In September, itwas reported that Binance, one of the largest cryptocurrency exchanges, isseeking to re-enter the Japanese market after four years of absence.
Japan intends to allow local investors to trade foreign stablecoins, such as USD Coin (USDC) or Tether (USDT), by the end of the second quarter of 2023 at the latest, TheFinancial Services Agency (FSA) reported.
Stablecoinsand Japanese Ban
However,the FSA is unlikely to allow all foreign stablecoins, and the final list is stillunknown. A spokesperson for the FSA told Cointelegraph that restrictionsmay still be imposed on some of them.
TheJapanese regulator will conduct its own compliance checks to confirm thatstablecoins will be safe for local users. Ultimately, the most popular ones couldnot be allowed to enter the market. However, Details on the matter have notbeen provided.
“TheFSA does not provide any opportunity to access such information before thedecision is made,” a spokesperson for the regulator said.
It wasfirst reported that Japan would loosen stablecoins regulations in late 2022. Atthe time, local media outlets suggested that the regulators would allow foreignstablecoin trading while maintaining a cap on remittances and assetpreservation by deposits.
Watch the recent FMLS22 panel on the current crypto winter.
JapanLoosens Stablecoin Regulations after Tightening Too Much
A billrestricting the issuance of foreign stablecoins was enacted in June 2022,requiring issuers to peg the tokens to the Japanese yen. The legislationis expected to finally go into effect in 2023, but it has already changed thepicture of the local cryptocurrency industry.
None of the31 FSA-registered cryptocurrency exchanges has since offered stablecoinoperations. In 2021, the FSA led the discussion on stronger industry regulation while preserving room for further development of cryptocurrency projects. Inthe case of the stablecoin market, the proposed regulatory changes have proved to betoo strict.
Moreimportantly, some exchanges, including Kraken and Coinbase, have decided toleave the country, explained by the weak cryptocurrency market. However, theloosening of regulations may encourage some players to return. In September, itwas reported that Binance, one of the largest cryptocurrency exchanges, isseeking to re-enter the Japanese market after four years of absence.
