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Japan to Crack Down on Stablecoins

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Mon, 12/06/2021 - 18:38
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Alex Dovbnya
Japan's top regulator is aiming to restrict stablecoin issuance
Japan to Crack Down on Stablecoins
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The Financial Services Agency (FSA), the top financial regulator in Japan, is working on a legislative proposal that would only allow banks and wire transfer companies to issue stablecoins in a blow to issuers like Tether, Nikkei reports.

Fiat-backed cryptocurrencies will have to be backed by reserve assets. 

The government agency is also focused on strengthening anti-money laundering regulations in the country. 

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Last December, a subsidiary of Tokyo-based IT behemoth, GMO, launched the first regulated stablecoin pegged to the value of the Japanese yen. 

Stablecoin issuers have also come under intense scrutiny in the U.S. Last month, the Treasury Department urged Congress to police dollar-backed cryptocurrencies like banks to ensure "adequate" protection.    

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About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.