Japan Plans to Allow Local Listing of 'Foreign' Stablecoins: Nikkei
Japan's Financial Services Agency is seeking feedback on new regulations that would allow stablecoins issued outside the country to be listed on local exchanges, Japanese newspaper Nikkei reported on Monday.
Under the draft regulation, local distributors will be allowed to handle payments-focused stablecoins, which are cryptocurrencies stabilized against the value of sovereign currencies like the U.S. dollar, if they maintain sufficient assets.
Another article published on Monday said the regulations stand to reverse a ban on the distribution of foreign stablecoins locally. Local exchanges do not currently list stablecoins like USD Coin (USDC) and tether (USDT), issued by foreign entities.
Following the collapse of multi-billion dollar stablecoin issuer Terra earlier this year, Japan's parliament quickly passed a set of rules specific to stablecoins and focused on investor protection.
The new rules on foreign stablecoins will be applied in conjunction with the revised Payment Services Act, according to Nikkei. The framework is open for public comment until Jan. 31, 2023 and will come into force later next year.