Japan tightens regulation of stablecoins
Following the collapse of the Terra USD (UST) in May, Japan has begun to introduce a regulatory framework for regulating stablecoins.
On June 3, according to Bloomberg news agency, Japan’s National Assembly passed a bill to clarify the legal status of Japan. stablecoins.
Under the new law, stablecoins are basically still considered electronic money However, they must be linked to the yen – Japan’s legal currency and guarantee the holder the right to exchange them at face value.
Japan builds a legal corridor, tightens control of stablecoins
In other words, stablecoins under the new Japanese law will have to be issued by a valid bank, money transfer agent or trust company and need permission from the government. As such, stablecoins are backed by existing assets from overseas issuers like Tether will not be dealt with under the new Japanese law.
The new regulatory framework will come into effect after a year, and the Japan Financial Services Agency said it will soon disseminate the new set of regulations to stablecoin issuers in the next few months.
After the collapse of UST and the old Terra ecosystem, stablecoins were “spoiled” as investors gradually lost confidence in them. At the same time, governments across the world is also racing to build a legal corridor for stablecoins to avoid similar disasters.
Before Japan, the British government immediately tightened the management of stablecoins after the disaster UST.
at Blogtuan.info – Source: thanhnien.vn – Read the original article here