According to the report, the Financial Services Agency will lift the ban on the domestic distribution of stablecoins issued outside of the country in 2023.
According to coinpost, in 2023, the Japanese Financial Services Agency may lift the ban on the circulation of stablecoins issued overseas (such as USDC USDT, etc.) in Japan, and the remittance limit will be set at 1 million yen ($7,500) per transaction. https://t.co/lCGCKd3bFT— Wu Blockchain (@WuBlockchain) December 26, 2022
After revising Cabinet Office ordinances and establishing guidelines, that will show detailed rules based on the revised Payment Services Act, FSA plan to apply them in line with the latest “Revised Payment Services Act” scheduled to come into effect in 2023.
The report also stated that the remittance limit will be set at 1 million yen [$7500] per transaction and that the issuer of domestically issued stablecoins will be required to prepare collateral assets as collateral. Issuers are limited to banks, fund transfer service providers, and trust companies.
Regarding stablecoins issued outside of Japan, which are set to be lifted, the distributors who handle the tokens in Japan, not the issuers, will be required to protect the assets.
As an anti-money laundering measure, it is also expected to require stablecoin distributors to record transaction information such as names. The Financial Services Agency (FSA) will start collecting opinions on draft guidelines for stablecoins after the 26th. CoinsPaid reported.
In June, the Japanese government gave its approval to a bill that recognised stablecoins as digital money, making Japan one of the first major countries to establish a legal framework for stablecoins.
They were, however, required to be backed by the Japanese yen or another legal tender that allowed holders to use them at face value. Even so, the bill did not mention international stablecoins backed by assets such as Tether.
In other news, the Japanese government plans to relax domestic crypto firms’ 30% tax requirement to stimulate growth in the domestic finance and technology sectors.