Currently, none of the 31 Japanese crypto exchanges registered with the local Financial Services Agency offer to trade foreign stablecoins. Next year, the Empire of the Rising Sun plans to revise its position on these assets. Lifting the ban on USDT and USDC is said to be on the agenda of the FSA.
Japan reopens the door to Tether (USDT) and USD Coin (USDC)
” Japan is set to lift the ban on foreign-issued stablecoins, such as $USDT, in 2013. »
Yesterday, Nikkei announced that the Financial Services Agency (FSA) of Japan is preparing to lift the ban on the distribution of foreign stablecoins throughout the Japanese archipelago. New regulations are therefore being prepared as part of this lifting for the year 2023. In particular, they will allow local exchanges to resume the management of stablecoin transactions, provided that they “preserve these assets through deposits and a limit higher discount”.
” If payment using stablecoins becomes widespread, international money transfers could become faster and cheaper », takes Cointelegraph in the report.
Additionally, the FSA has been emphasizing putting in place anti-money laundering regulations through cryptos. To do this, the agency collected comments on proposals to lift the ban on stablecoins in the archipelago.
Terra’s fault?
Early June, Cointelegraph revealed that Japan has passed a bill to limit the issuance of stablecoins only through its banks, trust companies and 31 local cryptocurrency exchanges.
As a reminder, the world was in shock over the collapse of TerraUSD at that time. In order to protect Japanese investors and the country’s financial system against the risks associated with the rapid adoption of stablecoins, the Japanese parliament is justified.
Here is Forever HODL B’s opinion on the stablecoins that Japan plans to allow in 2023.
” USDC vs. USDT: Which is Better?
USDT saw #Bitcoin trading at $2,000 and proving successful.
The bad thing is that they are unaudited and God knows where they are.
USDC is only 2 years old. As we can see, most new projects fail!
Good thing USDC is audited and based in the United States. »
In any case, the cryptocurrency market is in dire need of regulation. If Japan decides to take the plunge, it is because recent events have somehow forced governments to look into the subject.
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