Japan Passed A Legal Framework To Regulate Stablecoins
The Japanese Parliament has passed a bill that clarifies the legal status of stablecoins as digital coins pegged to the exchange rate of various national currencies. According to Bloomberg, the law defines cryptocurrency as digital money. By law, stablecoins must be pegged to the yen or other legal tender, as well as guarantee holders the right to redeem them at face value.
By law, only licensed banks, registered money transfer operators, and trust companies can now issue stablecoins. The law will not affect previously issued cryptocurrencies of foreign issuers. The law will come into force in a year.
After the TerraUSD (UST) collapse, Japan's quick action could help fight the crisis of confidence in cryptocurrencies. In addition, the Japan's Financial Services Agency (FSA) said it will prepare and implement regulating rules for stablecoin issuers in the next few months.
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