Japan Poised to Lift Ban on Non-domestic Stablecoins

JapanThe apex financial regulator is set to lift a long-standing ban on distribution of stablecoins issued by foreign firms.

To nikkiThe Financial Services Agency (FSA), the regulator that regulates the crypto sector, will step in “early next year”. But the body said it would first seek approval from lawmakers and industry.

Several small-cap yen-, euro- and USD-pegged stablecoins have already been launched in Japan. But none of the 31 crypto exchanges licensed by the FSA yet offer international stablecoin pairs. Thus, Japanese traders are effectively locked out of it. Tether (USDT) And usd coin (usdc) Market.

While the FSA stopped short of saying for certain whether the ban would actually be lifted, it has already started a consultation process. But with most lawmakers – including the government – now pushing for a more relaxed approach to regulation, some obstacles are likely to stand in the way of the FSA.

The regulator reigns supreme over the Japanese crypto sector. And the government has so far almost universally accepted the FSA’s crypto-related legislation requests.

However, the FSA noted that allowing domestic exchanges to handle stablecoins would require the government to introduce new legislation to ensure that fiat-pegged coins are not used for money laundering.

Paving the way for stable coins in Japan

Some legislators including opposition leaders – have complained that Japan’s tightly regulated sector is too stifling for domestic firms – and many are leaving the country. He has complained of brain drain abroad.

The government has responded by indicating that it is prepared to allow the sector to develop further. Tokyo says it wants to allocate more financial support to Web3-related startups.

it has led some Regulatory Bodies Will Begin to Relax Their Previously Stringent Token Listing Rules, token like Shiba Inu (SHIB) It has recently made its debut on Japanese platforms as a result of these new policies.

Nikkei noted that as the number of payments made “using stable coins” increases, “international remittances could become faster and cheaper” with coins such as USDC and USDT.