- Japan’s FSA announced that it has decided to lift the ban on stablecoins.
- From June 2023, domestic investors would be allowed to trade using stablecoins.
- The authority would ensure the security of the traders by checking the compliance of the stablecoins.
As per the reports of a local financial authority, the Financial Services Agency (FSA) of Japan announced that the new regulations on crypto would be implemented from June 2023, permitting domestic investors to trade certain stablecoins including Tether (USDT).
On December 26, 2022, a local news agency Nikkei reported that Japan’s FSA has already taken initiative to lift the ban on the domestic distribution of foreign-issued stablecoins in 2023. Accordingly, “the international remittances may become faster and cheaper” if the stablecoin payments spread.
Previously, in June 2022, Japan’s Parliament issued a bill restricting stablecoin trade in the country, especially to ban the issuance of stablecoins by non-banking institutions. The bill stated that the issuance of stablecoins was limited to licensed banks only.
According to the new reports, upon the implementation of the new regulations, FSA would examine the compliance of the stablecoins, and assure the convenience in pegging the stablecoins, to ensure security to the customers.
A spokesperson told that the agency was reluctant to reveal the stablecoins that would be allowed after setting up the new regulations, stating that “FSA does not provide any opportunity to access such information before the decision is made”.
The representative added:
This does not mean that all foreign products of so-called ‘stablecoins’ will be allowed without any restriction.
Significantly, the new rule is based on the Payment Services Act of 2022; a part of the proposed cabinet orders and cabinet office ordinances.
Notably, the spokesperson told that as the procedures seek the support of the public, the exact date of the implementation is not yet decided.
It is scheduled to be promulgated and enforced through necessary procedures upon closure of the public comment, therefore, the exact date is not decided yet.
It is also informed that FSA would accept public comments and suggestions regarding the changes implemented through the Payment Services Act till January 31.