Along with institutional adoption of cryptocurrencies, its acceptance by countries is also increasing. Japan’s FSA plans to grant legal status to certain altcoins by June 2023.
These altcoins are becoming legal in Japan!
The FSA will decide whether to allow US dollar-backed stablecoins such as USDT or USDC in Japan by June 2023. According to a local financial authority, Japan’s new regulations allowing investors to trade using stablecoins such as Tether (USDT) are expected to be adopted by June 2023 at the latest.
Japan’s Financial Services Agency (FSA) is working to lift the ban on domestic distribution of stablecoins. Accordingly, certain altcoins may become legal this year. However, a spokesperson for the Japan FSA said in a statement, “This does not mean that all foreign products called ‘stablecoins’ will be allowed without any restrictions.”
The FSA representative stated that the FSA will only allow stablecoins that successfully pass individual checks that ensure that such cryptocurrencies are safe for user protection. The spokesperson added that the examples are that foreign issuers in their home countries are subject to equivalent regulations in Japan and that the underlying assets are properly protected. The official also stressed that there is no chance of knowing if major stablecoins like Tether exist. USDT or USD Coin USDC will be allowed. “The FSA does not provide any opportunity to access such information before a decision is made,” the representative said.
Biggest stablecoins Source: CoinMarketCapThe course of cryptocurrency regulations in Japan
Japan’s new stablecoin regulations are part of proposed cabinet orders and cabinet office regulations regarding an amendment to the Payment Services Law of 2022. The new rules, introduced in December 2022, aim to set requirements for electronic payment instruments and improve relevant registration procedures. According to official data, the FSA will accept public comments on Payment Services Act changes until January 31, 2023.
An FSA spokesperson said, “It is scheduled to be announced and implemented with the necessary procedures following the public announcement. Therefore, the exact date has not been decided yet.” The FSA noted that the law enforcement period is set for early June. As cryptokoin.com reported earlier, the Japanese parliament passed a bill in June 2022 banning foreign stablecoins and requiring stablecoin issuers to only bind such cryptocurrencies to the Japanese yen or other legal tender.
The new legislation, which is expected to go into effect in 2023, has apparently affected many crypto firms. Because since then, none of the 31 Japanese exchanges registered with the FSA have offered operations related to these altcoins. In fact, some major crypto exchanges, including Coinbase and Kraken, have recently withdrawn their activities from Japan, citing a weak crypto market.
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