Ban on USDT to be lifted in Japan
2022.12.26 06:49
Ban on USDT to be lifted in Japan
Budrigannews.com – Some major restrictions on the use of stablecoins like Tether (USDT) and USD Coin (USDC) are being rethought by Japanese authorities.
Local news agency Nikkei reported on December 26 that the Financial Services Agency (FSA) of Japan will lift the ban on the domestic distribution of stablecoins issued abroad in 2023.
The new stablecoin guidelines in Japan will permit neighborhood trades to deal with stablecoin exchanging under state of resource conservation by stores and a furthest constraint of settlement. ” International remittances may become quicker and less expensive if the use of stablecoins spreads, the report states.
According to the FSA, allowing stablecoin distribution in Japan will also necessitate additional controls against money laundering. On Monday, the authority began soliciting feedback regarding plans to lift Japan’s ban on stablecoins. As recently revealed, Japan’s parliament passed a bill to boycott stablecoin issuance by non-banking foundations in June 2022.
The furthest down the line measure will essentially affect digital money exchanging administrations presented in Japan as of now no nearby trades give exchanging stablecoins like USDT or USDC.
As of November 30, 2022, none of the 31 Japanese exchanges registered with the FSA, including BitFlyer and Coincheck, were handling stablecoin trading, according to official data.
According to data from CoinGecko, BitFlyer, one of the largest cryptocurrency exchanges in Japan, currently trades five cryptocurrencies, including Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), XRP (XRP), and Stellar (XLM).
More UK working on regulating crypto market
Recently, Japanese authorities have been working diligently on crypto-related regulations. A proposal to eliminate the requirement for cryptocurrency companies to pay taxes on tokens issued as paper gains was approved by the tax committee of the ruling Liberal Democratic Party of Japan on December 15. Local regulators had previously discouraged the use of algorithmic stablecoins like Terra USD (UST).
