Japan’s government has approved a plan to change the rules for stablecoins and crypto brokerages so that companies that deal in crypto will have an easier time doing business in the country
According to the Fsa, it was approved by the Cabinet and sent to the National Diet for review the same day.
Currently, stablecoins on the Japanese market have to be supported entirely by cash reserves. The proposed regulations would allow other types of collateral to include short-term government bonds or fixed-term deposits, but only up to 50%. With this, stablecoin issuers will have more flexibility while still keeping things safe for investors.
Companies will have to maintain a 1:1 ratio of stablecoin supply to cash deposits in regulated banks. However, proposed changes would allow issuers to rely on specific U.S. and Japanese government bonds with a remaining maturity of three months or less as collateral instead.
Crypto brokerages are also getting some relief. Until now, they have had to comply with the same strict regulations as cryptocurrency exchanges, which has made it harder for them to operate in Japan.
Under the new proposal crypto brokerages will be classed as “intermediary businesses.” This new rule separates brokers from retailers, which means they will have their own unique set of rules. They do not need to obtain the same permits as crypto exchanges or wallet operators. Existing anti-money laundering policies will still apply, but they will be less cumbersome than before.
In order to be eligible, brokerages need to show that they do not deal with client money directly. Preparations are underway for the launch of brokerage services by Mercari, SBI Securities, and Monex Securities.
Japan was one of the pioneers in accepting cryptocurrency as a legitimate mode of payment in 2017. But following major hacking events like Mt. Gox and Coincheck, authorities imposed stricter regulations to safeguard investors.
Also Read: Japan Seeks Public Opinion On Stablecoin Reserve And Crypto Rules
