The First Yen Stablecoin Approved by The Japanese Regulator

The stablecoin which is backed by the Japanese yen has been approved by the Japanese Financial Services Agency (FSA) for test use in the legal sandbox of Japan.

The license is also provided and will be valid for one year. Over this period, the project should be tested and confirm the objectives as "the secure transfer of crypto assets on a sidechain network and the possibility of building a stable and healthy OTC market by improving transparency for the price-making process," the confirmation says.

Only exchanges with a Japanese Virtual Currency Exchange License will have access to the product. Stablecoin is developed by the Japanese fintech company Crypto Garage, a subsidiary of Digital Garage Inc. Crypto Garage also collaborates with Blockstream, offering a yen-bitcoin trading pair. The joint project is called SETTLENET, it will also be monitored by the FSA and “will provide the regulatory authorities with the functionality to monitor any unlawful trade, including money laundering.”

The FSA came up with a liberal approach in the field of the crypto industry at the end of 2017, launching the FinTech Proof-of-Concept (PoC) Hub. Companies that want to experiment with crypto make proposals to the FSA and get approval and some freedom of action within the experimental framework.

Image courtesy of the Bitcoinist