Japan Passes Bill That Defines Stablecoins as Digital Currency

On Friday, Japan passed a bill that defines stablecoins as digital currency, Bloomberg reports.

The new law, which is expected to come into effect in a year, follows last month’s Terra-Luna crash that rocked the cryptocurrency world.

In August last year, the Japanese financial market regulator launched discussions and debates on new crypto laws to bring new regulations on risky digital assets this year.

With the new law, Japan has become one of the leading economies to introduce a legal framework around stablecoins, the outlet said.

A stablecoin is a type of cryptocurrency whose value is pegged to another asset, such as the US dollar or euro.

Additionally, the new law requires stablecoins to be pegged to Japanese yen or another legal currency.

In addition, these stablecoins must have been designed to guarantee holders the right to redeem them at face value.

Additionally, the new regulations mean that only licensed banks, registered money transfer agents and trust companies can issue stablecoins, the outlet reported.

Japan and Crypto Regulation

During this month, Bitcoin Satoshi’s Vision (BSV) is expected to become the 15th cryptocurrency listed on Huobi Japan, which is one of the most popular cryptocurrency exchanges in the country.

This number, compared to the number of cryptocurrencies listed on exchanges in other countries, reflects the strict regulatory environment that cryptocurrency players operate in Japan.

In 2021, the Japan Financial Services Agency (FSA) established a new unit to oversee digital currency regulatory frameworks.

Quoting three anonymous officials, Reuters said at the time that the move followed the country’s concern about the influence of private money on the existing financial system.

However, Japan has always been a progressive country when it comes to crypto adoption and regulation.

Some of the earliest cryptocurrency exchanges were established in the East Asian country and dominated the Bitcoin trading market for many years.

However, crypto regulations in the country underwent a major overhaul in 2019 after a massive attack on the country’s leading crypto exchange, Coincheck, resulted in over $500 million worth of digital currencies being stolen.

On Friday, Japan passed a bill that defines stablecoins as digital currency, Bloomberg reports.

The new law, which is expected to come into effect in a year, follows last month’s Terra-Luna crash that rocked the cryptocurrency world.

In August last year, the Japanese financial market regulator launched discussions and debates on new crypto laws to bring new regulations on risky digital assets this year.

With the new law, Japan has become one of the leading economies to introduce a legal framework around stablecoins, the outlet said.

A stablecoin is a type of cryptocurrency whose value is pegged to another asset, such as the US dollar or euro.

Additionally, the new law requires stablecoins to be pegged to Japanese yen or another legal currency.

In addition, these stablecoins must have been designed to guarantee holders the right to redeem them at face value.

Additionally, the new regulations mean that only licensed banks, registered money transfer agents and trust companies can issue stablecoins, the outlet reported.

Japan and Crypto Regulation

During this month, Bitcoin Satoshi’s Vision (BSV) is expected to become the 15th cryptocurrency listed on Huobi Japan, which is one of the most popular cryptocurrency exchanges in the country.

This number, compared to the number of cryptocurrencies listed on exchanges in other countries, reflects the strict regulatory environment that cryptocurrency players operate in Japan.

In 2021, the Japan Financial Services Agency (FSA) established a new unit to oversee digital currency regulatory frameworks.

Quoting three anonymous officials, Reuters said at the time that the move followed the country’s concern about the influence of private money on the existing financial system.

However, Japan has always been a progressive country when it comes to crypto adoption and regulation.

Some of the earliest cryptocurrency exchanges were established in the East Asian country and dominated the Bitcoin trading market for many years.

However, crypto regulations in the country underwent a major overhaul in 2019 after a massive attack on the country’s leading crypto exchange, Coincheck, resulted in over $500 million worth of digital currencies being stolen.