Japan’s Financial Services Agency is currently considering new regulations to allow stablecoins from foreign companies to be listed in local exchanges. According to the Nikkei Japanese Review, the FSA is currently working on draft guidelines to allow exchanges the listing of stablecoins subject to certain conditions. The conditions will include those pertaining to stablecoin issuance and management as well as their impact upon the stability of Japan’s financial system.
These regulations, if implemented, could reverse the ban on foreign stablecoin distribution in Japan. Stablecoins issued by foreign entities, such as USD Coin and USDT, are not currently listed on local exchanges.
The draft regulations, which are being developed together with the revised Payment Services Act are currently open for public comment up to January 31, 2022. They are expected to enter into force later this year.
Potential listing of foreign stablecoins in Japan may be a major development in the cryptocurrency industry. It could make it easier for Japanese investors to trade and access stablecoins issued worldwide by companies. This could lead to greater competition among stablecoin issuers as they will be able offer their products to a wider audience.
It is important to remember that the FSA’s draft guidelines have not been finalized and it is unclear when they will be implemented. It is important to note that the regulatory environment for stablecoins or cryptocurrencies can be very different from one country to the other. Companies operating in this area may need to navigate complex regulatory landscapes.