The Japanese Financial Services Agency (FSA) is reportedly considering altering their regulations on the use of stablecoins like Tether (USDT) in the cryptocurrency market.
According to Nikkei, the FSA will allow the circulation of foreign-issued stablecoins within the country starting in 2023.
This would permit local exchanges to facilitate stablecoin trading, provided that they meet certain criteria for asset protection and have a maximum remittance.
Additionally, the FSA is soliciting public opinion on potential solutions to Japan’s current ban on stablecoins, and a law passed by Japan’s parliament prohibits the issuance of stablecoins by non-banking organizations after June 2022.
Recently, the Japanese government has also been focusing on regulations surrounding cryptocurrencies, with a proposal to exempt cryptocurrency enterprises from taxes on paper profits from token issuance.
Furthermore, the FSA has warned of the risks associated with algorithmic stablecoins such as TerraUSD (UST).
