Japan had effectively banned all foreign Stablecoins after the collapse of TerraUSD, that triggered a liquidity crisis throughout the crypto market.
On December 26th, Japan’s Financial Services Agency (FSA) announced new institutional amendments and guidelines regarding Stablecoins.
The FSA is reportedly close to easing up their restrictions and unbanning Stablecoins "whose value is linked to legal currencies such as the US dollar
Under the new regulations, crypto/financial distributors will be tasked with handling the stablecoins instead of the foreign issuers to protect their value.
Local Japanese exchanges would be allowed to handle foreign stablecoin transactions “under the condition of asset preservation by deposits and upper limit of remittance.
The remittance limit will be 1 million yen ($7500) per transaction.
The exchanges will need to adhere to even stricter anti-money laundering measures, as the FSA will also require the exchanges to collect the personal information of their users.
The new Stablecoin regulations "will come into effect in 2023", but no firm date has been set.
I guess this is good news, but for some reason it feels oddly bad; almost like there is too much regulation and rules complicating things.
However, I could just be tired and cranky at the moment, so not sure what to make of it yet.
Regardless of my thoughts, this will allow crypto users in Japan to use all kinds of Stablecoins again and this should be a general good for the crypto world.
Are you a fan of Stablecoins?
If so, which is the best or the worst?
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