The Financial Services Agency (FSA) of Japan has announced that they will follow the US regulator’s footsteps in the matter of strengthening regulatory oversight for Stablecoins. According to reports from a local publication, the FSA has declared the updated restrictions on Stablecoins issuance in the nation, in lieu of which, only banks and wire transfer services will now be able to issue stablecoins.
The Japanese authorities referred to the Tether fiasco in the US, noting that by imposing restrictions on the issuance of Stablecoins, the government aims to ascertain the economy’s stability by preventing mass liquidation amid fear that the issuer of the currency going bankrupt. The FSA has clarified that it shall introduce the legislation of Stablecoins by next year, further confirming that they took regulatory framework inspiration from the US. Additionally, Japan is aiming to launch a yen-based cryptocurrency by 2022 as well.
Japan to Impose Additional AML Restrictions
Along with restrictions on the issuance of Stablecoins, the FSA also plans on imposing additional security protocols to make the decentralized industry less risky, ensuring consumer protection. According to reports, the authorities will publish the updated and stern anti-money laundering guidelines. Regulatory oversight will substantially increase on intermediaries like wallet providers involved in stablecoin transactions. These wallet providers will be required to follow the Japan’s law on preventing transfers of criminal proceeds by verifying user identities and reporting suspicious transactions.
The Japanese regulators are following up on their initiation of fastening crypto laws in the nation. Earlier this year, the FSA formed a new division to oversee a broader market of “decentralized finance”. Thus, regulating all blockchain-based financial operations that don’t have central intermediaries. Furthermore, Japan’s Finance Ministry joined the regulation project in lieu of the fast-moving development of the crypto industry.
“Japan can no longer leave things unattended with global developments over digital currencies moving so rapidly”, Reuters quoted the Ministry’s note.
- UBS Warns Of Apocalyptic Crypto Winter And The Cryptocurrency Prices Are Poised To Crash
- SOL Tanks 6% As Solana Faces Another 48 Hour Outage, Boom and Bust Moment for Solana?
- Fantom (FTM) Surpasses Avalanche and Solana as DeFi TVL Crosses $12 Billion
- Buy The Dip Survey Shows 61% Of Chinese Bitcoin Investors Still Willing To Bet On Bitcoin
- Mike Novogratz Bets To Pay Peter Schiff $1 M If Bitcoin Price Stays Below $35,000 After 2022
- “At Some Point There’ll Be A Flash Crash” Says Gold Bull Peter Schiff
- Binance And FTX Worst Hit Exchanges As Losses Climb Almost Two Billion Combined
- Bitcoin S2F Founder says Current dip cannot stop Bitcoin from Adding Another Zero
- Football Clubs Look To Mine Cash Revenue With Crypto Offerings
- Fed Readying To Launch The US Crypto Policy? White House Directs Agencies To Prepare Report
- Solana Creeps Higher, Looks To Revisit January Highs AT $177.0
- Ethereum Price Analysis: Fibonacci Retracement level 0.618 Triggers Recovery Rally In ETH Coin
- BTC Price Analysis: Death Crossover Brings Nightmares On Satoshi Street; Is This A Buying Opportunity?
- Bitcoin Death Cross Haunting Investors, Will BTC Make or Break?
- DOGE Price Analysis: Highly Influential Bearish Trendline Undermines Bullish Attempts; Buy, Sell Or Hold?
- Terra Price Analysis: Will LUNA Price Bounce Back at 0.382 Fibonacci Retracement?
- SAND Price Analysis: Sandbox Price Losses 50% Retracement Level, Good Time to Buy?
- LINK Price Analysis: Chainlink price reclaims 200-day EMA, Emerging trendline Suggests More Upward Price Movement
- Harmony Price Analysis: Rising Parallel Pattern Could Lead 30% Growth In $ONE Price
- Ripple Price Analysis: XRP Bears Struggle To Breach $0.7 Support Zone, Is A Reversal Next Move?