Japani companies can now issue stable coinsAfter the long-awaited law came into force today.
The amended Payment Services Act was promulgated on the midnight of June 1, 2023.
Under the terms of the act, all token-issuing firms must be able to prove that they own the underlying asset that backs their coins.
And only regulated banks, fund transfer service providers, trust companies, and other financial industry firms can issue these coins.
The new anti-money laundering rules will also require distributors to keep records of transaction information.
But Banks is known to be keen on venturing into space.
Newspaper nikki Selected quotes from Kondo Hidekazu of GU Technologies.
The firm provides stablecoin technology to regional banks such as Shikoku Bank.
Kondo said:
“Several regional banks are considering issuing stablecoins.”
Industry insiders also said that financial service providers may also consider launching a “digital community currency”.
Why do Japanese banks want to issue stablecoins?
The media outlet said that the “lifting” of the de facto ban on domestic issuance of stable coins was “expected to improve the efficiency of payments between companies in Japan and foreign parties.”
Experts believe that the B2B payments market is worth around $7.2 billion.
Japanese media outlets coinpost informed of:
“If [Japanese] Stablecoins Increase Global Transactions Could Be Easier [for issuers] Earning fees by facilitating payments between MNCs.
The expert also said that the stablecoin could be used in the international remittance and online shopping sectors.
The new law stipulates that crypto assets and stablecoins are fundamentally different.
It decides that algorithmic or cryptoasset-backed “stable coins” cannot be defined as stable coins.
In addition, guidelines guaranteeing “user safety and compliance” have been implemented.
Token issuers will be obliged to ensure that they can suspend “transfers and redemptions” of payments “that do not manage wallets”.
The growth potential for Japanese megabanks such as Mitsubishi UFJ will be enormous.
Mitsubishi UFJ and its associates Started work on a stablecoin interoperability pilot in March,
The head of the country’s central bank is also This year talked about stable coins.
Bank chief claims stablecoins can “coexist” with central bank digital currenciescbdcS).