Japan remains on track and presents new legislation concerning the distribution of stablecoins.
According to the official announcement, on June 3, the Japanese parliament enacted legislation prohibiting non-banking organizations from issuing stablecoins.
On top of that, only licensed banks, trust firms in Japan, and registered money transfer agencies are permitted to issue stablecoins under the new regulation. The legislation also implies that it does not include asset-backed stablecoins issued by foreign entities such as Tether or algorithmic stablecoins.
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The bill will also supposedly present financial institutions with a new registration system that will distribute previously mentioned digital assets and additionally support the government in preventing money laundering.
Japan parliament's signed bill is expected to recognize stablecoins which are backed by Japanese yen or another legal tender as digital money.
The new law is expected to go into force in 2023. Moreover, Japan’s Financial Services Agency (FCA) is going to establish regulations that will concern the authorization of stablecoins. According to various experts, the regulatory framework might cause some implications for international firms to join the industry.
Interestingly enough, Japan’s initiative comes after a shocking collapse of TerraUSD that sparked a discussion about whether such tokens should be banned or regulated.
Earlier this year, the Congressional Research Service (CRS) shared a brief summary of UST stablecoins' colossal fall and outlined several significant points.
In other news, back in May, Tether announced that it would introduce a new Mexican peso-pegged stablecoin dubbed MXNT. This marks the token as the fourth fiat-pegged stablecoin in Tether’s roster, following euro-pegged EURT, dollar-pegged USDT, and the offshore Chinese yuan-pegged CNHT.
