The Japanese parliament passed a bill establishing a legal framework for stablecoins.
After the collapse of the UST, governments took steps to protect investors, while another move came from the Japanese government. In this approved bill, the Japanese parliament defines the concept of stablecoins to be based on the yen or any other currency and guarantees the right to use them at face value. According to the law, stablecoins can now only be issued by licensed banks, registered money transfer agents and fund companies.
The law, which does not address algorithmic stablecoins, which has recently sparked controversy over their sustainability, is expected to take effect within a year.
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