February 5, 2023

Japan's FSA to approve stablecoin law by June

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Japan's FSA to approve stablecoin law by June

The Financial Services Agency (FSA) of Japan is working to lift the ban on the distribution of stablecoins within the country. The new rules will be adopted no later than June.

The agency clarified that the lifting of the ban is notmeans that stablecoins will be allowed without any restrictions - they will need to pass individual checks and prove their safety to consumers.

So far, the agency cannot say for surewhether large stablecoins like Tether (USDT) or USD Coin (USDC) will be allowed. The agency has yet to work out the rules, and only then will it begin to consider certain stablecoins.

New rules for stablecoins - part morea large package of laws regarding the crypto industry, which the Cabinet of Japan proposed as amendments to the Payment Services Law in 2022. The package aims to establish certain requirements for electronic payment instruments and registration procedures.

Now there is a public discussion of the amendments - the FSA accepts comments until January 31. As soon as the discussion is over, the agency will begin a thorough study.

Previously, the FSA of Japan addressed the regulators of other countries with a call to treat the cryptocurrency industry like banks and regulate the industry accordingly.