Japan to lift ban on distribution of foreign stablecoins

Japanese regulators want to pave the way for legalization of stablecoin circulation in the country, as they fear that the lack of control will provoke a surge in financial crimes. The Japan Financial Services Agency (FSA) plans to lift the ban on domestic distribution of foreign stablecoins such as USDT or USDC in 2023. This is due to the revision of the main restrictions on digital currencies in the country. The new rules are meant to help Japanese exchanges trade stablecoins on the condition that assets are held by deposits and a cap on remittances.. It is believed that if payments using stablecoins become popular in Japan, then this will have a positive effect on international money transfers – they will become faster and cheaper. The agency is confident that the new rules will require the development of additional regulatory measures to stop money laundering crimes.. It is assumed that innovations will seriously affect the cryptocurrency market in Japan, since now no local crypto exchange provides trading and exchange of such popular stablecoins as USDC or USDT. Earlier, the Japan Crypto Asset Business Association (JCBA) and the Japan Virtual and Crypto Asset Exchange Association (JVCEA) filed an application with the FSA asking the agency to reduce taxes for local crypto companies.. The request was approved – the law should come into force on April 1.