Japan Will Lift Ban On Foreign Stablecoin Distribution In Japan In 2023

Key Points:

• Japan will lift ban on overseas-issued stablecoins in Japan in 2023.
• It is recommended to set a maximum transfer limit of 1 million yen per transaction.
• The Financial Services Authority will begin polling on the guidelines after December 26 and go live in 2023.

Early next year, Japan will lift ban on the distribution of foreign-issued stablecoins in the country. This decision is intended to be linked to legal currencies such as the US dollar.

The processing is allowed with the condition of preserving the assets with the deposit and the highest remittance limit. If stablecoin payments spread, international money transfers could become faster and cheaper.

The plan will be put in place by the Financial Services Authority along with the latest “Fund Settlement Law” which will be implemented in 2023 after revising relevant guidelines.

The content of the guide includes that, for stablecoins issued in Japan, issuers must prepare guaranteed value-added assets, and issuers are limited to banks, registered transfer agents, trust companies, etc.

The Financial Services Authority will begin polling on the guidelines after December 26.

In addition, regarding the planned overseas issuance of stablecoins that are expected to be lifted, domestic practitioners dealing with tokens are obligated to preserve their assets, and also recommend Exports set a maximum remittance limit of 1 million yen per transaction.

In addition, anti-money laundering measures will be put in place to issue stablecoins, require issuers to record transaction information, and encourage them to develop systems that can track fraudulent transfers. However, the effectiveness of recording transaction information is questionable.

As an earlier update by Coincu News, the tax committee of Japan’s ruling Liberal Democratic Party (LDP) accepted a plan to exclude cryptocurrency businesses that issue their own tokens from paying corporation taxes on unrealized gains.

The suggestion to eliminate the tax on paper gains was included in an interim policy proposal presented by the Web3 project team.

It also included recommendations for enacting legislation governing LLC-type decentralized autonomous organizations (DAO), supporting the issuance of yen-based permissionless stablecoins, governance reforms at the Japan Virtual Currency Exchange Association, which handles token screening, and guidelines for auditing crypto companies.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Foxy

CoinCu News