When desires for stablecoin regulation become reality – The recent descent into hell of the Terra ecosystem and the fall of its stablecoin UST has had the effect of waking up the international financial regulators. In this context, Japan will be the first country to adopt a real legal framework around stablecoins.
Historical moment: Japan adopts regulations around stablecoins
According to an announcement by the Bloomberg media, Japan has passed a bill aimed at regulate and clarify the legal status of stablecoins. It’s a historical moment for the cryptosphere. From then on Japan became the first country to equip themselves with a legal arsenal around stablecoins.
First, this law defines stablecoins as cryptocurrencies somewhat special. Indeed, the law provides that stablecoins must be backed by yen or any other legally short currency. In addition, under the law adopted by Japan, stablecoins must guarantee holders the right to redeem at face value.
Therefore, from now on stablecoins can only be issued by licensed banksof the registered money transfer agents or some trust companies. However, Japanese law does not address existing stablecoins. Moreover, the exchanges offering their services in Japan do not list stablecoins.
This bill was drafted by the Financial Services Authority (FSA) in 2021. It was adopted by majority by the government of Japan during the plenary session of the House of Councillors. Thus, the law should come into force in a year. In addition, the FSA has stated that it will introduce issuer regulations of stablecoins in the coming months.
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FTX exchange launches services in Japan
Concomitantly with the passage of the stablecoin law by the Japanese government, FTX exchange announced to launch its cryptocurrency exchange services licensed in Japan.
This launch is the result of the acquisition of Japanese group Liquid by FTX last February. With this investment, FTX acquired the Quoine Corporation crypto exchange which is registered with the FSA of Japan. Indeed, Liquid was the parent company of Quoine Corp which is one of the first licensed crypto exchanges in Japan launched in 2017.
The FTX exchange will thus be able to satisfy its Japanese customers under the aegis of FTX Japan. It would then be a question of allowing the trading cryptocurrencies such as bitcoin (BTC), ether (ETH) or solana (SOL). In addition, users will also be able to perform their deposits and their withdrawals using the japanese yen.
Finally, it should be remembered that Japan is the most pioneering country in the recognition of the cryptosphere. He is also one of the most stringent in the regulation of the ecosystem. It is also the first country to create a formal framework licensing for crypto exchanges.
The launch of its trading services in Japan completes Sam Bankman-Fried’s incredible expansion of the exchange. Moreover, the CEO of FTX had declared that he would not hesitate to multiply acquisitions to raise its exchange to the highest.
It is now the whole so-called “traditional” economy that is getting into battle order to take advantage of of bitcoin and cryptocurrencies. And you? Don’t wait any longer for register on the benchmark crypto exchange FTX. A lifetime reduction in your trading fees awaits you thanks to the JDC affiliate link.