Jeremy Allaire, head of Circle, the company that issues USDS stablcoin, commented on new legislation in Japan that gives stablcoin the status of digital money. Ellair called the bill passed an important thing the government and financial regulators did, as Japan was one of the first countries to create a legal framework to regulate stablcoins.
Ellair believes that through the use of stablcoins, Japan will expand its influence in the crypto market, as stablcoins will be used more frequently for international trade and foreign currency transactions. Ellair said Circle is interested in creating a partnership with Japan. In addition, last December the Financial Services Agency of Japan (FSA) lifted the ban on the distribution of foreign stabelcoins.
Nevertheless, stablecoin issuers, such as Circle, must comply with strict rules under the new law. For example, stabelcoins issued must be pegged to the Japanese yen or other government currencies, and holders must be able to redeem them at face value. And only licensed financial institutions will be able to issue stable cryptocurrencies: registered money transfer agents, as well as trust companies and banks.
Circle is determined to expand its presence in Asia. In June, the company received a license from the Monetary Authority of Singapore (MAS), which allowed the subsidiary Circle Internet Singapore to offer services related to domestic and international transfers using cryptocurrency.<br