Japan to Lift Ban on Stablecoins in 2023: Report
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The current ban on stablecoins in Japan is being considered for change by Japanese regulators. The Financial Services Agency of Japan will end its ban on the domestic usage of international stablecoins in 2023, according to a report from a regional news outlet.
The new “Revised Payment Services Act” contains the amendments, as reported. The proposed measure will bring back foreign stablecoin but in a new dimension. Stablecoins might now be issued by licensed banks and mobile money providers thanks to the Japanese restriction on them.
Meanwhile, the organization in charge of stablecoins in Japan will become distributors under the new law. This entails giving local distributors control over foreign stablecoins instead of their issuer. In this context, the term “local distributors” refers to national cryptocurrency exchanges.
The modifications will also limit the transfer of international stablecoins to a total of $7,500 per transaction. Stablecoin use will continue to be restricted by anti-money laundering and counterterrorism financing laws despite efforts to repeal the ban. Feedback on the proposal to repeal the stablecoin ban in Japan is already being provided to the FSA.
Before the proposed reforms, none of the 31 exchanges in Japan offered stablecoins to cryptocurrency enthusiasts.
Crypto Sentiment in Japan Witnesses Alteration
In general, attitudes toward the use of cryptocurrencies have changed in Japan. As a result, there are now explicit rules for listing virtual tokens on local cryptocurrency exchanges.
International cryptocurrency exchanges were drawn to the laid-back atmosphere and began operating there. Recent acquisitions include a regional exchange authorized by the Japanese government through Binance, the largest cryptocurrency exchange in the world by trading volume.
Another encouraging development was the recent prohibition of cryptocurrency firms from paying taxes on paper gains from issued tokens by the ruling party of Japan’s tax committee.
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