Japan will loosen regulation of stablecoins
As it was reported, no later than June of 2023, Japan will adopt updated regulations for stablecoins. According to these regulations, local cryptocurrency exchanges will be allowed to list “stable coins” that were issued outside of Japan.
Recall that at the end of last year, the regulator has already begun to collect reviews on the softening of the listing rules of “foreign” stablecoins. And this process will continue until January 31, 2023.
“The document is expected to be published and enter into force after the close of public discussion, the exact date has not yet been determined,” said a source from the FSA.
In the meantime, only assets that pass “individual tests” and can guarantee safety in terms of consumer protection will be approved. As for the listing of USDT or USDC, whether the government will approve it is still unclear.
It is worth mentioning that certain restrictions on “foreign” stablecoins were implemented after the Terra crash. At that time a draft law was adopted, which brought the mandatory bonding of “stable coins” to the yen or other legal tender. In addition, they were supposed to guarantee owners the right to redeem them at face value.
Also in December 2022, the FSA issued a recommendation to restrict the use of algorithmic stablecoins.