• Japan is set to lift its ban on the domestic distribution of dollar-backed stablecoins that are issued overseas.
• The Financial Services Agency (FSA) of Japan is making plans to come out with a draft system and guidelines for the circulation of stablecoins.
• When the revised Payment Services Act goes into effect in 2023, it will be applied in tandem with the guidelines to ensure that distributors and issuers create a safe transaction environment.
Japan is planning to lift its ban on the domestic distribution of dollar-backed stablecoins that are issued overseas. This news has been welcomed by the crypto world as it will open up new avenues of investment and trading.
The Financial Services Agency (FSA) of Japan officially made an announcement on December 26, 2022, that it would come out with a draft system and guidelines for the circulation of stablecoins that are linked to currencies such as the U.S. dollar. The aim of the guidelines would be to ensure that distributors and issuers create a safe transaction environment.
The lifting of the ban is in response to the fall of Terra/Luna in May 2022, and the subsequent scrutiny of stablecoins by various countries. Distributors will be authorized to manage stablecoins that are issued abroad as long as they keep sufficient assets. It is expected that this move will help to make the crypto world more secure and trusted, as well as helping to increase the number of users.
When the revised Payment Services Act goes into effect in 2023, it will be applied in tandem with the guidelines. This will help to ensure that stablecoins are used in an orderly and safe manner. In addition, the authorities are also planning to introduce new rules and regulations that will provide more clarity and security when it comes to the use of stablecoins.
The lifting of the ban on stablecoins is expected to have a positive impact on the crypto world. It will make it easier for people to trade and invest in cryptocurrencies and stablecoins. In addition, it will also help to increase the confidence of investors in the crypto space. This in turn could lead to more people joining the crypto world, which could result in further growth in the industry.
Overall, the lifting of the ban on stablecoins is a positive step forward for the industry. It will make the crypto world more secure, trusted and accessible. This could help to stimulate the growth of the crypto industry and make it more attractive to investors.