Japan’s regulatory authorities are planning to follow the stablecoins regulation framework of the United States.
A few months ago, US regulators proposed a framework on the stablecoins issuer’s companies to restrict their operations under highly restricted frameworks just like Banks. Now Japan’s Financial Services Agency proposed a similar kind of approach to regulating the stablecoins issuer companies like USDT, USDC, etc, however, these are not operating in Japan.
According to reports, the new regulations on the stablecoins issuer will consider them as a financial institution. And the new rules will be imposed by the regulatory body soon. However, many things are still unclear.
These new rules will not impact the digital assets market in any way but surely it will ensure the stability of the stablecoins backed by the real cash (fiat currency), crypto liquidity provider company B2C2 said.
Joerg Schmidt, CEO of the B2C2, shared his point of view on this proposal of Japan’s regulatory body and said that this move of Japan is to work in line with international development.
Joerg also explained through the note sent to the blockwork that, before this, all the Stablecoin issuer’s firms were working under the freedom to work in various ways to design a better structure of stable coins in the crypto market.
Current stablecoins operating in Japan are crypto-assets (JPY-Zen), prepaid payment instruments (JPY-C), and money orders.
Joerg confirmed through his note statement that Japan is gonna restrict all these firms to register themselves as a Money transfer service or as a Banking institution.
“It seems that the FSA is now of the opinion that money orders are the most suitable way to structure stablecoins. Issuers of such stablecoins would need to register as a money transmitter or be licensed as a bank”
However, Joerg also noted that many things make Stablecoins issuers’ companies’ operations different from Banks, so there are many problems associated with this to have a Bank license to run a stablecoin firm. Joerg believes that regulators will surely bring new changes and updates to the existing laws and rules.