Law Decoded, May 30–June 6: Terra’s aftermath in China, Japan and South Korea
2022.06.07 15:27
Law Decoded, May 30–June 6: Terra’s aftermath in China, Japan and South Korea
The “long waves” of TerraUSD’s May 7 collapse, which we noted two newsletters ago, are extending even further. Last week brought some notable reactions to the stablecoin’s depegging in the East Asia region.
A Chinese state-owned media outlet, the Economic Daily has signaled that the Chinese government may introduce even tighter regulations on cryptocurrencies and stablecoins due to the collapse of the Terra ecosystem. It might even mean a complete ban on stablecoins to prohibit ownership, transfer, purchase and sale of the assets, some experts believe. What China plans, Japan does — as a new law will limit the issuance of stablecoins to licensed banks, registered money transfer agents and trust companies.
