Japan’s new regulations prevent investors from investing in stablecoins such as Tether (USDT) is expected to be adopted no later than June 2023, according to a local fiscal authority.
Japan’s Financial Services Agency (FSA) is working on it. Removing the ban on domestic distribution of stablecoinsare planning to allow some stablecoins later this year.
“This does not mean that all foreign products of so-called ‘stablecoins’ will be allowed without restriction,” a spokesperson for Japan’s FSA said in a statement to Cointelegraph.
An FSA representative said that the FSA will only allow stablecoins that successfully pass individual checks to ensure that such cryptocurrencies are safe from a consumer protection point of view. The spokesman added that in instances where foreign issuers in their countries are subject to equivalent regulations in Japan, the underlying assets are properly protected.
The authority also emphasized that there is no way to know whether major stablecoins such as Tether (USDT) or USD coins (USDC) will be allowed. “The FSA does not provide any opportunity to access such information before making a decision,” the representative said.
Japan’s new stablecoin regulations are part of the proposed Cabinet Orders and Cabinet Office Ordinance on Amendments to the Payment Services Act of 2022. introduced In December 2022, the new rules aim to establish requirements for electronic payment instruments and develop the relevant registration procedures.
According to official figures, the FSA will accept public comments on changes to the Payment Services Act until January 31, 2023.
“It will be implemented and enforced through the necessary procedures after closing public comment, therefore, an exact date has not yet been decided,” an FSA spokesperson said. The FSA noted that the deadline for implementing the law is set for early June.
Related: Japanese regulators want crypto to be treated like traditional banks.
As previously reported, the Parliament of Japan The bill to ban foreign stablecoins was passed. In June 2022, stablecoin issuers are required to peg such cryptocurrencies only to the Japanese yen or another legal tender.
The new legislation, which is expected to take effect in 2023, has apparently affected many crypto firms as none of the 31 FSA-registered Japanese exchanges have since offered stablecoin operations. There are some major crypto exchanges including Coinbase and Kraken. Recently extracted operations in Japan, Citing a weak crypto market.
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