Today the Japanese parliament passed a revised Funds Settlement Law, which includes new provisions regulating stablecoins. However, the new legislation, which comes into force in a year, only appears to apply to permissioned networks and does not support algorithmic stablecoins.
Issuers of stablecoins will be restricted to banks, licensed money transfer companies that have asset custody capabilities, and trust companies. Intermediaries such as brokers must be registered as part of a new licensing system. In combination, this may make it harder for foreign organizations to participate.
Additionally, there will be enhanced anti-money laundering provisions and a new system to monitor transactions. Details will be clarified in the future by the Financial Services Agency (FSA).
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
