Japan Will List "Foreign" Stablecoins
Input is being sought by the Financial Services Agency regarding new stablecoin regulations that will go into effect in 2023.
According to a report in the Japanese newspaper Nikkei on Monday, the Financial Services Agency of Japan is soliciting public comment on proposed new regulations allowing stablecoins issued outside Japan to be listed on local exchanges.
According to the proposed rules, local distributors will be able to deal with stablecoins (cryptocurrencies whose value is pegged to that of a sovereign currency, like the U.S. dollar) with a focus on payments if they keep enough of those currencies in reserve. According to a second article published on Monday, these rules could make it possible again to buy and sell foreign stablecoins in the country. Foreign-issued stablecoins such as USD Coin (USDC) and tether (USDT) are not listed on local exchanges.
To protect investors after the collapse of multibillion-dollar stablecoin issuer Terra earlier this year, the Japanese parliament recently passed a set of rules pertaining to stablecoins. Nikkei reports that the revised Payment Services Act will be used with new regulations regarding foreign stablecoins. The deadline for public feedback on the framework has been extended to January 31; it will go into effect sometime later in 2023.
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