Last week Japan’s Financial Services Agency disclosed that a new Bill has been submitted to the National Diet to update the Payment Services Act, the legislation that governs stablecoins and cryptocurrencies.
The key changes relating to stablecoins and crypto include:
The existing version of the Payment Services Act supports the issuance of stablecoins by three types of institutions: banks, money transfer businesses and trust companies. While stablecoins are still extremely nascent in Japan, it’s expected that trust companies are likely to be the most prolific as they support issuance on behalf of third parties and are similar to structures used elsewhere. For example, Mitsubishi UFJ Trust had discussions about working with Binance for stablecoin issuance.
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