Stablecoins to Re-Enter Japan? FSA Works on Regulations
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, The
Financial Services Agency (FSA) reported.
However,
the FSA is unlikely to allow all foreign stablecoins, and the final list is still
unknown. A spokesperson for the FSA told Cointelegraph that restrictions
may still be imposed on some of them.
The
Japanese regulator will conduct its own compliance checks to confirm that
stablecoins will be safe for local users. Ultimately, the most popular ones could
not be allowed to enter the market. However, Details on the matter have not
been provided.
“The
FSA does not provide any opportunity to access such information before the
decision is made,” a spokesperson for the regulator said.
It was
first reported that Japan would loosen stablecoin regulations in late 2022. At
the time, local media outlets suggested that the regulators would allow foreign
stablecoin trading while maintaining a cap on remittances and asset
preservation by deposits.
Watch the recent FMLS22 panel on the current crypto winter.
Japan
Loosens Stablecoin Regulations after Tightening Too Much
A bill
restricting the issuance of foreign stablecoins was enacted in June 2022,
requiring issuers to peg the tokens to the Japanese yen. The legislation
is expected to finally go into effect in 2023, but it has already changed the
picture of the local cryptocurrency industry.
None of the
31 FSA-registered cryptocurrency exchanges has since offered stablecoin
operations. In 2021, the FSA led the discussion on stronger industry regulation while preserving room for further development of cryptocurrency projects. In
the case of the stablecoin market, the proposed regulatory changes have proved to be
too strict.
More
importantly, some exchanges, including Kraken and Coinbase, have decided to
leave the country, explained by the weak cryptocurrency market. However, the
loosening of regulations may encourage some players to return. In September, it
was reported that Binance, one of the largest cryptocurrency exchanges, is
seeking 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, The
Financial Services Agency (FSA) reported.
However,
the FSA is unlikely to allow all foreign stablecoins, and the final list is still
unknown. A spokesperson for the FSA told Cointelegraph that restrictions
may still be imposed on some of them.
The
Japanese regulator will conduct its own compliance checks to confirm that
stablecoins will be safe for local users. Ultimately, the most popular ones could
not be allowed to enter the market. However, Details on the matter have not
been provided.
“The
FSA does not provide any opportunity to access such information before the
decision is made,” a spokesperson for the regulator said.
It was
first reported that Japan would loosen stablecoin regulations in late 2022. At
the time, local media outlets suggested that the regulators would allow foreign
stablecoin trading while maintaining a cap on remittances and asset
preservation by deposits.
Watch the recent FMLS22 panel on the current crypto winter.
Japan
Loosens Stablecoin Regulations after Tightening Too Much
A bill
restricting the issuance of foreign stablecoins was enacted in June 2022,
requiring issuers to peg the tokens to the Japanese yen. The legislation
is expected to finally go into effect in 2023, but it has already changed the
picture of the local cryptocurrency industry.
None of the
31 FSA-registered cryptocurrency exchanges has since offered stablecoin
operations. In 2021, the FSA led the discussion on stronger industry regulation while preserving room for further development of cryptocurrency projects. In
the case of the stablecoin market, the proposed regulatory changes have proved to be
too strict.
More
importantly, some exchanges, including Kraken and Coinbase, have decided to
leave the country, explained by the weak cryptocurrency market. However, the
loosening of regulations may encourage some players to return. In September, it
was reported that Binance, one of the largest cryptocurrency exchanges, is
seeking to re-enter the Japanese market after four years of absence.
Credit: Source link
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