• Japan’s Financial Services Agency (FSA) is set to lift the ban on foreign-issued stablecoins in 2023.
• Japan’s new stablecoin act aims to regulate all virtual currencies and limit their issuance to banks and fund transfer companies, which can present collateral assets.
• All local entities wanting to engage in the management and distribution of stablecoins have been mandated to submit information to the regulator’s feedback assessments exercise.
The Japanese Financial Services Agency (FSA) has announced the upcoming lifting of the ban on foreign-issued stablecoins in 2023. The move is part of the new stablecoin act, which sets out to regulate all virtual currencies and limit their issuance to banks and fund transfer companies, who can present collateral assets.
The FSA plans to put in place a set of regulations that will give domestic entities the power to handle foreign stablecoin transactions, as well as establish guidelines for asset management and anti-money laundering measures. According to the agency, the remittance limit per transaction will be set at $7,500 (1 million yen).
In order to ensure compliance with the new regulations, all local entities engaging in the management and distribution of stablecoins have been mandated to submit information about their users to the regulator’s feedback assessments exercise, which is scheduled to start after December 26.
The upcoming lifting of the ban on foreign-issued stablecoins in 2023 is expected to open up the Japanese market to a variety of new products and services. As a result, the FSA has put in place measures to ensure that the transition is orderly and secure. This includes a feedback exercise to assess how well local entities are adhering to the new regulations and a set of guidelines for asset management and anti-money laundering measures.
The FSA is confident that the lifting of the ban on foreign-issued stablecoins in 2023 will create an environment conducive to the growth of the crypto industry. With the help of the feedback assessments exercise, the FSA is sure that it can ensure that local entities are following the regulations and that the transition is orderly and secure.
