Japan’s financial regulator may propose legislation to restrict the issuance of stablecoins in 2022
According to the Nikkei (according to the Nikkei)Nikkei) Is one of the world’s largest financial newspapers and the entity behind the Nikkei 225 Index. The Financial Services Agency of Japan (FSA) will introduce legislation next year to limit the issuance of stablecoins to banks and wire transfer companies. In theory, this would prevent entities such as Tether (USDT), does not operate as a bank, is only regulated in the British Virgin Islands, and is not allowed to conduct business with Japanese customers.
However, the newly proposed rules will only affect some stablecoin issuers.For example, USD Coin (USDC) issuer Circle plans to become Crypto Bank Obtained a charter in the United States during the regulatory crackdown. Although operating alone as a private company, stablecoin issuers are usually exempt from financial reporting, auditing, or regulatory oversight, leading to significant speculative claims that Tether May not have enough reserves Support USDT.
In addition, the FSA also plans to strengthen supervision in areas such as preventing the transfer of criminal proceeds, verifying user identities, and reporting suspicious transactions by stablecoin issuers and wallet providers.
No matter how innovative private stablecoins are, they directly compete with central bank digital currencies or CBDCs and their adoption. In Japan, its central bank plans to launch a digital yen called “DCJPY” by the end of next year.It is supported by a consortium Nearly 70 companies, Including the country’s largest financial institutions, which have all joined the DCJPY experiment. Currently, there is a stable currency, the digital yen, in circulation, called “GYEN”, and the other is called “GYEN” To be launched Supported by circle.