Circle, the issuer of USDC, plans to issue a ‘stablecoin’ in Japan. This was stated by Circle co-founder and CEO Jeremy Allaire in an interview with CoinDesk.
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He expressed interest in the jurisdiction in light of the new rules regulating stablecoins. In his view, if this class of assets begins to be used in cross-border trade, the country will become an important market for the cryptocurrency industry.
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Under the bill adopted in June 2022, stablecoins in Japan must be pegged to the yen or another legal tender and guarantee holders the right to redeem them at face value.
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The head of Circle did not specify details of a potential stablecoin launch, but noted that the company is interested in partnering with the world’s third-largest economy.
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In March, three Japanese banks — Tokyo Kiraboshi Financial Group, Minna no Bank and The Shikoku Bank — announced the start of testing ‘stablecoins’ on the Japan Open Chain blockchain.
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After the Terra collapse in 2022, authorities enacted a series of restrictive measures on stablecoins aimed at protecting investors. However, the government plans to allow listing of assets issued outside the country on local exchanges.
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Earlier this January, Japan’s Financial Services Agency urged global regulators to treat the cryptocurrency industry as strictly as banks.
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From June 1, the so-called Travel Rule from FATF began to apply in the country, requiring monitoring of crypto transactions to combat money laundering.