Japan To Lift Their Foreign Stablecoin Ban In 2023.
Japanese regulators are reportedly considering lifting the current restrictions they have in place for foreign stablecoins sometime next year.
Stablecoin Ban Lift
Just six months after they first established a legal framework for stablecoins back in June, the Financial Services Agency (FSA) will be lifting the ban of the domestic distribution of foreign-issued stablecoins in 2023, according to a report by local news agency Nikkei.
According to the new proposed rule, distributors will be the party responsible for handling the stablecoins rather than the foreign issuers in order to protect their value.
The FSA has also proposed that the maximum amount of remittances for these foreign-issued stablecoins will be capped at 1 million yen or $7,500 per transaction.
Although there has yet to be full information on which stablecoins will be made available, U.S.-based Circle-issued USDC as well as the largest stablecoin in the market Tether (USDT) are expected by many to be possible players to make an entry into Japan.
According to coinpost, in 2023, the Japanese Financial Services Agency may lift the ban on the circulation of stablecoins issued overseas (such as USDC USDT, etc.) in Japan, and the remittance limit will be set at 1 million yen ($7,500) per transaction. https://t.co/lCGCKd3bFT
— Wu Blockchain (@WuBlockchain) December 26, 2022
Japan’s Regulation Of Crypto
Japan’s sudden strict regulation and restriction of stablecoins was first introduced back in June of this year following the massive collapse of the Terra ecosystem, which also led to the downfall of $LUNA as well as its stablecoin TerraUSD.
However it seems that recently, Japan has become more lenient in loosening their regulations on cryptocurrencies and the crypto industry in general.
Earlier this year, the biggest crypto exchange in the world Binance announced their plans to return to the Japanese market after their first failed attempt the previous year.
This, along with the fact that the Bank of Japan (BoJ) announced their plans to create their own central bank digital currency (CBDC) early 2023 shows that Japan is steadily accepting and growing the crypto market within their country.