Jeremy Allaire, co-founder, and Chief Executive of Circle Internet Financial, recently expressed interest in the Japanese crypto market. In an interview earlier today, Allaire stated that his crypto firm was considering issuing a stablecoin in Japan. Circle’s interest in Japan came a month after the island nation passed a landmark legislation to regulate stablecoins.
According to a recent article, Allaire anticipated that Japan could become a significant market for stablecoins. The Circle CEO’s anticipation was based on the increased use of stablecoins for foreign trade and cross-border transactions.
Following a visit to Japan in June 2023, Jeremy Allaire stated that his stablecoin firm was interested in making partners in the island nation. Japan’s Payment Services Act, which came into effect on June 1, 2023, was one of the biggest reasons for Allaire’s interest in the Japanese crypto market.
The Payment Services Act recognized stablecoins backed by legal tender including the US Dollar, as an electronic payment method. The new legislation also allowed such stablecoins to be issued in the country. However, the bill laid out strict rules for stablecoin issuers, including limiting the issuing power to licensed financial institutions.
The latest bill was described by Jeremy Allaire as the most important thing that Japan’s top financial regulator, the Financial Services Agency (FSA) had done. In December last year, the FSA attempted to reverse a ban on the circulation of foreign stablecoins in the country. Nonetheless, the agency’s failed attempt to allow crypto exchanges to enlist foreign issued stablecoins forbids Japanese exchanges from listing stablecoins like USDT and USDC.
Bloomberg reported last month that Japan’s largest bank, the Mitsubishi UFJ Trust and Banking Corporation had expressed interest in stablecoins. The Japanese banking giant was reportedly in talks with stablecoin issuers to explore issuing a stablecoin in Japan via its crypto platform Progmat.
