March 28, 2024

Japan's FSA to approve stablecoin law by June

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Japan's FSA to approve stablecoin law by June

Japan's Financial Services Agency (FSA) is working to lift the ban on the distribution of stablecoinsThe new rules will be adopted no later than June.

The agency clarified that the lifting of the ban does not mean that stablecoins will beare allowed without any restrictions – they will need to pass individual checks and prove their safety for consumers.

So far, the agency cannot say for sure whether major stablecoins such as 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.

The new rules for stablecoins are part of a larger package of laws regarding the crypto industry that the cabinet has proposedMinisters of Japan as amendments to the Payment Services Law in 2022.The package aims to establish certain requirements for electronic payment instruments and registration procedures.

A public discussion of the amendments is currently underway — the FSA is accepting comments until January 31.As soon as the discussion is over, the agency will begin a thorough study.

Previously, Japan's FSA called on regulators in other countries to treat the cryptocurrency industry like banks and regulate the industry accordingly.