Japan passes law recognising stablecoins as digital money

Japan’s parliament has passed a bill recognising stablecoins as digital money. Bloomberg reports.

Under the bill, “stablecoins” must be pegged to the yen or another lawful tender and guarantee holders the right to redeem them at face value.

This interpretation means that only licensed banks, money-transfer providers and trust companies may issue stablecoins.

The law will take effect in the summer of 2023.

The Financial Services Agency of Japan promised to create operating rules for stablecoin issuers.

As a reminder, currently, the projects for future regulatory requirements for stablecoins are being prepared by Mitsubishi UFJ Financial Group and Sumitomo Mitsui Trust. Circle, the co-emitter of USDC, has also reported on such plans.

Earlier, the UK Treasury announced plans to legalise stablecoins. The move is intended to position the country as a crypto-friendly jurisdiction.

Later, FCA executive director FCA Sarah Pritchard urged taking the TerraUSD collapse into account as work continued on the industry’s regulatory framework.

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