So much effort is been put in by different countries to see to it crypto remains as centralized as possible. New restrictions on stable coins is a new approach to manage a fraction of crypto meaning Japanese would only be limited to centralized stable coin's either directly issued by the central banks or by authorized agencies or banks.
Since stable coins save investors from highly volatile coins like Bitcoin and a handy option for investors when pulling out from the volatility it's becoming a cause of interest by many as so much centralized stable coin exist meaning Japan can will only be limited to What they are offered
Topic: Stablecoins to face new restrictions in Japan - page 2. (Read 244 times)
The regulations for stable coins are something that were bound to happen since the backup for most of the stable coins is already something that have been regulated since time immemorial. Therefore they are just extending it directly and not taking the indirect route.
Stable coins for me are essential to exchange and trade and other than that I would always prefer bitcoins over them, hands down. But seeing the governments take interest in them might be worthwhile since they would be functioning alongside CBDC's now.
Most big countries like the US have currently no regulations on the stable coins. But after Japan US as well is moving forth to bring these things to a regulatory environment, so we might be seeing some major changes but I do hope these changes would not be extremely agressive and people won't have to really pay immense amount of taxes causing probelms for them.
It was something that was supposed to happen sooner or later.
Stable coins for me are essential to exchange and trade and other than that I would always prefer bitcoins over them, hands down. But seeing the governments take interest in them might be worthwhile since they would be functioning alongside CBDC's now.
Most big countries like the US have currently no regulations on the stable coins. But after Japan US as well is moving forth to bring these things to a regulatory environment, so we might be seeing some major changes but I do hope these changes would not be extremely agressive and people won't have to really pay immense amount of taxes causing probelms for them.
It was something that was supposed to happen sooner or later.
Quote
Only banks, wire transfer companies would issue currency-backed coins like Tether
TOKYO -- Japan is acting to limit the number of issuers of cryptocurrencies like Tether, which are backed by such reserve assets as the dollar or the yen, joining the U.S. in moving toward tougher restrictions on a growing segment of finance, Nikkei has learned.
So-called stablecoins are often pegged to a fiat currency to prevent the kind of volatility associated with Bitcoin and other leading cryptocurrencies. The Financial Services Agency seeks to propose legislation in 2022 to restrict issuance of stablecoins to banks and wire transfer companies.
The debt crisis engulfing property developer China Evergrande has brought renewed attention to the claims of stability by these cryptocurrencies. Tether, the biggest stablecoin in circulation, is backed partly by commercial paper -- a type of short-term corporate debt. Under scrutiny, the company said in September that it did not hold any commercial paper or other debt issued by Evergrande.
"To address risks to stablecoin users and guard against stablecoin runs, legislation should require stablecoin issuers to be insured depository institutions, which are subject to appropriate supervision and regulation, at the depository institution and the holding company level," U.S. financial authorities including the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency wrote in a November report.
Japan's FSA sees limiting stablecoin issuance to banks and wire transfer companies, which are legally required to protect customer assets, as a way to lower the risk for coin users.
The market capitalization of stablecoins issued by the largest stablecoin issuers came to more than $127 billion as of October 2021, according to a figure cited in the U.S. report.
The FSA will also toughen regulations meant to prevent money laundering. Intermediaries like wallet providers involved in stablecoin transactions and management will be brought under the agency's oversight. They will also be required to meet obligations under Japan's law on preventing transfers of criminal proceeds, including verifying user identities and reporting suspicious transactions.
Stablecoins hold potential benefits for both businesses and consumers, allowing them to transfer money and pay for purchases at ultralow transaction costs.
A new digital currency backed by bank deposits is on track for launch in Japan as early as 2022, an effort that will involve the nation's top banks and about 70 other companies and organizations.
https://asia.nikkei.com/Spotlight/Cryptocurrencies/Stablecoins-to-face-new-restrictions-in-Japan
TOKYO -- Japan is acting to limit the number of issuers of cryptocurrencies like Tether, which are backed by such reserve assets as the dollar or the yen, joining the U.S. in moving toward tougher restrictions on a growing segment of finance, Nikkei has learned.
So-called stablecoins are often pegged to a fiat currency to prevent the kind of volatility associated with Bitcoin and other leading cryptocurrencies. The Financial Services Agency seeks to propose legislation in 2022 to restrict issuance of stablecoins to banks and wire transfer companies.
The debt crisis engulfing property developer China Evergrande has brought renewed attention to the claims of stability by these cryptocurrencies. Tether, the biggest stablecoin in circulation, is backed partly by commercial paper -- a type of short-term corporate debt. Under scrutiny, the company said in September that it did not hold any commercial paper or other debt issued by Evergrande.
"To address risks to stablecoin users and guard against stablecoin runs, legislation should require stablecoin issuers to be insured depository institutions, which are subject to appropriate supervision and regulation, at the depository institution and the holding company level," U.S. financial authorities including the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency wrote in a November report.
Japan's FSA sees limiting stablecoin issuance to banks and wire transfer companies, which are legally required to protect customer assets, as a way to lower the risk for coin users.
The market capitalization of stablecoins issued by the largest stablecoin issuers came to more than $127 billion as of October 2021, according to a figure cited in the U.S. report.
The FSA will also toughen regulations meant to prevent money laundering. Intermediaries like wallet providers involved in stablecoin transactions and management will be brought under the agency's oversight. They will also be required to meet obligations under Japan's law on preventing transfers of criminal proceeds, including verifying user identities and reporting suspicious transactions.
Stablecoins hold potential benefits for both businesses and consumers, allowing them to transfer money and pay for purchases at ultralow transaction costs.
A new digital currency backed by bank deposits is on track for launch in Japan as early as 2022, an effort that will involve the nation's top banks and about 70 other companies and organizations.
https://asia.nikkei.com/Spotlight/Cryptocurrencies/Stablecoins-to-face-new-restrictions-in-Japan
....
Stablecoins have been under scrutiny since bitfinex tether 2017. Much has been alleged and published about the specific role stablecoins play in the cryptoeconomy. Without much being confirmed. I hope people remember the various things that have been said about stablecoins over the past 4 years. Past history is a great indication of what the future will resemble, as far as stablecoins go.
If current trends and campaign promises pan out, I would guess the President of el salvador will be offering excellent terms to stablecoins next.
I personally like stablecoins as a means of limiting purchasing volatility on the consumer side. Instant execution and dollar parity are great options for traders wanting to purchase bitcoin in higher sums.
Japan's motive for this move, would be an interesting thing to know. If indeed they are able to publicize reasons for it.
Jump to: