On the 26th, the Japanese government allowed stablecoins from abroad to be circulated in its country, this new law will improve the market situation in Asia and Japan in particular.
- According to a Nikkei report, the Japan Financial Services Authority (FSA) has officially published a draft system regarding the circulation of “foreign” stablecoins, or coins of value that are linked to legal currencies such as the Dollar.
- Earlier, the action to ban “foreign” stablecoins is a move taken by the Japanese government to protect domestic investors after the UST scandal and the collapse of Terra Luna. The FSA spokesperson said that the draft system would allow distributors to trade in foreign-funded stablecoins if they have enough assets to secure or maintain.
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- This action of the government in “Land of the Rising Sun” supports the country’s market becoming less constrained during the economic crisis after the Covid-19 Pandemic and Terra scandal. At the same time, domestic and foreign investors have the opportunity to develop more exposure, Japan hopes that with this move, domestic projects will have more capital from abroad instead of just calling for domestic capital.
- We interviewed Mr. Simon, an NFT trader living in Aomori, he said, “I am very excited to hear this news from the FSA, for an investor like me it creates extremely great conditions for trading directly instead of having to contact through intermediary channels, I hope this law is confirmed and put into operation immediately.”
- According to Nikkei, the law is under public comment until January 31 and this new regulatory system will be applied in conjunction with the revised Payment Services Act, which will come into effect in 2023.
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