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Japan likely to lift ban on foreign stablecoins in 2023: Report

According to the FSA, additional regulations regarding anti-money laundering controls will be necessary in order to permit stablecoin distribution in Japan.

Japan likely to lift ban on foreign stablecoins in 2023: Report
Recently, the Japanese government has been working hard to develop regulations relating to cryptocurrencies.

The use of stablecoins like Tether and USDT is currently subject to some significant cryptocurrency restrictions that are being reviewed by Japanese regulators, as reported by Cointelegraph.

According to the local news outlet Nikkei, Japan’s Financial Services Agency (FSA) will end its ban on the domestic distribution of foreign-issued stablecoins in 2023.

According to the new stablecoin regulations in Japan, local exchanges will be able to handle stablecoin trading as long as assets are preserved through deposits and there is a maximum remittance amount. International remittances may become quicker and more affordable if stablecoin payment spreads, the report warns.

According to the FSA, additional regulations regarding anti-money laundering controls will be necessary in order to permit stablecoin distribution in Japan. On Monday, the authority began gathering comments on ideas for lifting the stablecoin ban in Japan. As was previously reported, a bill to prohibit stablecoin issuance by non-banking institutions was approved by the Japanese parliament in June 2022.

Recently, the Japanese government has been working hard to develop regulations relating to cryptocurrencies. The tax committee of Japan’s ruling Liberal Democratic Party approved a proposal on December 15 that would have exempted cryptocurrency companies from having to pay taxes on tokens issued for paper gains. Local authorities have previously advised against using algorithmic stablecoins like TerraUSD (UST).

(With insights from Cointelegraph)

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First published on: 27-12-2022 at 10:15:56 am