The Financial Services Agency of Japan is contemplating diminishing the prohibition over the distribution of stablecoin tokens issued by foreign entities. The reports point out that the latest crypto rules will shortly be applied in line with the new ‘Revised Payment Services Act.’
Japan May Lift Ban on Stablecoins Provided by Foreign Entities in 2023
If the prohibition is dismissed from the stablecoins provided by the foreign entities, the platforms operating dealing with stablecoins in the Japanese jurisdiction will automatically turn into distributors to operate in Japan.
According to the reports, the distributors will have the responsibility of handling the stablecoins rather than the overseas issuing parties to protect the value.
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In the meantime, the peak figure of remittances made for these stablecoin tokens is expected to be nearly 1M yen (almost $7,500) on every transaction.
Nevertheless, the specific stablecoins to return to Japan are unclear. USDC, the stablecoin issued by Circle of the United States, could be among the expected tokens that would enter the country. Another player in this respect could be the biggest stablecoin called Tether (USDT).
On the other hand, the obligation is again put on the shoulders of the issuer for the stablecoins which are minted domestically. The issuing company will need collateral assets to play the role of security in this respect. In the meantime, only trust corporations, banks, as well as firms providing fund transactions will be the permitted issuers in the market of stablecoins.
It was formerly reported that the financial watchdog of Japan wants to categorize the algorithmic stablecoins in the class of Bitcoin. However, it has been signified by the Financial Services Agency that it may take more strict measures for this category in the coming time.
In addition to certain fields, the authorities in Japan recently provided some relaxation in the regulatory sphere while keeping in view the crypto market.
It takes into account enabling the crypto exchanges to have more straightforward methods for the listing of digital assets. In November this year, the Japanese Digital Agency declared to establish a decentralized autonomous organization that would operate under it in advance of enacting its legal position.
The Ministry of Economy in Japan has even organized a Web3 office. The respective entity is devoted to creating an adequate policy to deal with the Web3 world.
In the meantime, Binance (a popular crypto exchange) has made a strategy to go back to the market of Japan. This is taking place following a year of operating in the market following the cautions by the local regulatory bodies. In an exclusive endeavor to re-enter, the biggest crypto exchange (in terms of volume) could obtain Sakura Exchange BitCoin (a crypto business based in Japan).
Along with this, crypto giant SBI and Square Enix revealed another contract. The gaming firm – which is listed by the Tokyo Stock Exchange – and SBI started an M&A Agreement focusing on the crypto gaming world. Apart from the stablecoin regulations of Japan, the country is making favorable moves to facilitate the crypto miners operating within the jurisdiction.
Japanese Agency Enters an Agreement to Enhance Crypto Mining
In this respect, a partnership has taken place between the country’s Tokyo Electric Power (TEPCO) and the equipment developer called TRIPLE-1 to facilitate crypto mining within Japan via the extra electricity existing on its grid.
On the other hand, in the case of limitations, modifications to the Labor Standards Act of Japan additionally prohibit the utilization of virtual assets for digital salary transactions.