Towards the end of December 2022, it was reported that the Japanese Financial Services Agency [FSA] may reverse the ban on the circulation of overseas stablecoins like Tether and USDC. It was pointed out that the remittance limit would likely be set at 1 million yen [$7500] per transaction.
As per the latest reports, the new regulations that would enable investors to trade using stablecoins could be adopted as soon as June 2023. However, there is no confirmation whether the likes of Tether and USD Coin would be included or not.
A spokesperson for Japan’s FSA recently told a media outlet,
“This does not mean that all foreign products of so-called ‘stablecoins’ will be allowed without any restriction… FSA does not provide any opportunity to access such information before the decision is made”
Individual checks ought to be cleared
However, the FSA representative added that the agency will allow users to use stablecoins that clear individual checks to make sure that such cryptocurrencies are safe from the user protection perspective. Giving examples, the spokesperson said that foreign issuers in their countries being subject to equivalent regulations in Japan will fall under the ambit.
Japan’s crypto stance has notably eased over the years. Japanese Prime Minister Fumio Kishida’s “New Capitalism” vision seeks to boost Japan’s economy. The country recently revealed its expansion into the NFT, Metaverse space. The government is also looking to ease crypto tax rules.
Additionally, in Q4 2023, the government revealed that cryptocurrency exchanges will be able to list tokens without pre-screening. Nevertheless, cryptocurrency companies have been flocking out of the country.
Last month, Kraken announced that it will wind up its operations in Japan. The decision was a part of the exchange’s efforts to “prioritize resources and investments” in those areas that aligned with its strategy. More recently, Coinbase paused its Japan operations citing “market conditions.”