Japan’s new stablecoin a cryptocurrency with extremely low volatility, sometimes used as a means of portfolio diversification. Examples include gold-backed cryptocurrency or fiat-pegged cryptocurrency. bill sets a high standard for stablecoin investor protection.
- Japanese law will guarantee the right to exchange stablecoins for their face value.
- Legislación establece las stablecoins como dinero digital.
- They can only be issued by licensed banks and companies.
- Tether is not covered by this law.
Many people went out completely shorn after the collapse of the algorithmic stable currency EarthUSD, UST . In addition, the crisis, which affected the entire crypto ecosystem, put stable currencies in the spotlight, made many agencies and countries more concerned about them and analyze them. In this sense, Japan became one of the first major economies to build a legal framework to regulate them.
Today, Japan’s parliament enacted a bill that clarifies the legal status of the stablecoins, essentially establishing them as digital money. According to the new law, stable currencies must be pegged to the yen or another legal currency and guarantee holders the ability to redeem them at par value.
This bill goes beyond any measure enacted anywhere else in the world in terms of protecting investors in stable currencies.
Banks and licensed entities
Stable currencies can only be issued by licensed banks, registered money transfer agents and trust companies. according to new regulations in Japan. Stable currencies backed by existing assets from offshore issuers such as Tether, as well as their algorithmic counterparts, are not covered by the Act. . However, if companies likeTether want to enter the Japanese market an area or arena, online or offline, in which commercial dealings are conducted. in the future should ensure that their stable currencies comply with the new regulations.
Incidentally, the media point out that, curiously enough, stable currencies do not appear in any of the exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. Japanese cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. exchange.
The new legal framework will be implemented in one year. La Japan Financial Services Agency has stated that it will establish regulations governing stable coin a coin can refer to a cryptocurrency that can operate independently or to a single unit of such cryptocurrency. issuers in the coming months. Currently, Mitsubishi UFJ Trust a trust is a fiduciary relationship in which one party, known as a trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary. and Banking Corp, one of the country’s leading financial services firms, plans to issue its own “ Currency currency is a medium of exchange that defines value. Progmat” linked to the value of the Japanese yen.
Sharat Chandra, crypto expert and Vice President of Research and Strategy at EarthID, gave a positive statement on the measure to Business Today: “India should follow the example of Japan’s Stable Currencies Regulation Bill and incorporate elements that address a place where cryptocurrency can be sent to and from, in the form of a string of letters and numbers. investor protection and financial stability risks”.
He added: “ El UK Treasury also interested in including stable currencies as part of its payments regulation . Payment giants like Visa and Mastercard use stable currencies to bring settlement efficiency to their networks. We can’t afford to waste time with this new form of digital digital technologies are these electronic tools that have the ability to generate, store or even process data. money driving the next wave of the payments revolution.
Concluyó diciendo: “Indian regulators should take a forward-looking approach and embrace stable currencies to lead the country in payments innovation and globalize India’s payments success story.”
Japan’s new stable currency bill is the first to guarantee protection of the right to exchange for stable currency investors. However, other countries may follow suit.
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