Japan Plans to Allow Local Listing of 'Foreign' Stablecoins Such as USDT and USDC: Nikkei
The Financial Services Agency is seeking feedback on new stablecoin regulations set to take effect in 2023.
Japan's Financial Services Agency is seeking feedback on new regulations that would allow stablecoins issued outside the country to be listed on local exchanges, Japanese newspaper Nikkei reported on Monday.
Under the draft regulation, local distributors will be allowed to handle payments-focused stablecoins, which are cryptocurrencies stabilized against the value of sovereign currencies like the U.S. dollar, if they maintain sufficient assets.
Another article published on Monday said the regulations stand to reverse a ban on the distribution of foreign stablecoins locally. Local exchanges don't currently list stablecoins like USD Coin (USDC) and tether (USDT) that are issued by foreign entities.
Following the collapse of multibillion-dollar stablecoin issuer Terra earlier this year, Japan's parliament passed a set of rules specific to stablecoins and focused on investor protection.
The new rules on foreign stablecoins would be applied in conjunction with the revised Payment Services Act, according to Nikkei. The framework is open for public comment until Jan. 31 and will come into force later next year.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.