- The FSA Japan to lift ban on the distribution of stablecoins.
- The revised payment services act to come into effect in 2023.
- The idea behind this new revised Payment Services Act is to regulate crypto assets.
With recent increased activity in web3, the Financial Services Agency in Japan will lift the domestic ban on the distribution of stablecoins issued overseas.
Nihon Keizai Shimbun, the Japanese newspaper, reported that with the latest guidelines, the Japanese government plans to apply the revised Payment Services Act into effect in 2023.
Additionally, the latest changes in the act suggest that, for the domestically issued stablecoins, the issuer will have to prepare collateral assets. Moreover, there will be no private issuers, the issuers will be limited to banks, fund transfer service providers, and trust companies.
Additionally, various other changes will take place:-
- The distributors handling the tokens will have to protect the assets.
- The upper limit of the remittances will be 1 million yen per transaction.
- As an anti-money laundering measure, the stablecoin distributors must record the transaction information, including the names.
The idea behind this new, revised Payment Services Act is to regulate crypto assets and virtual currencies and limit the issuance of currencies to banks and fund transfer companies.
The exact date of the issuance of the Act is yet to be decided, and the FSA will start collecting opinions on the new act after December 26, 2022.