News

Japan introduces stablecoin legal framework

Friday 3 June 2022 10:31 CET | News

Japan has introduced a legal framework to clarify the legal status of stablecoins, defining them as digital money.

Stablecoins must be linked to the yen or another legal tender and guarantee holders the right to redeem them at face value, according to the new law. The legal definition means stablecoins can only be issued by licensed banks, registered money transfer agents and trust companies.

The legislation doesn’t address existing asset-backed stablecoins from overseas issuers like Tether, or their algorithmic counterparts. Crypto exchanges in Japan don’t list stablecoins. 

The new legal framework will take effect in summer 2023. Japan’s Financial Services Agency has said it will introduce regulations governing stablecoin issuers in coming months. 

More: Link


Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: regulation, regulatory sandbox, cryptocurrency, stablecoin, digital currency
Categories: DeFi & Crypto & Web3
Companies:
Countries: Japan
This article is part of category

DeFi & Crypto & Web3