- Japan’s Financial Services Agency announced that the agency would lift the ban on the domestic distribution of stablecoins in 2023.
- The new bill would be implemented according to the Revised Payment Sevices Act.
- According to the bill, the issuers would be restricted to banks, fund transfer service providers, and trust companies.
Reportedly, the Financial Services Agency (FSA) of Japan announced that the ban on the domestic distribution of Stablecoins issued overseas would be effectively lifted in 2023.
Significantly, Japan’s efforts in regulating crypto trade could be traced back almost five years back. However, the regulations on the supply of stablecoins in particular had their origin recently.
In June, Japan’s parliament issued a bill to limit the supply of Stablecoins to licensed banks, registered agents, and trust companies in Japan. Mainly, the regulation is aimed at protecting investors and the financial system from risks related to the rapid adoption of Stablecoins.
Notably, the Stablecoins bill was an aftermath of the significant decline in the value of cryptocurrencies following the Terra token collapse.
According to the “Revised Pa ...
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