There is hope that Japan would lift its restriction on USD Coin and Tether, two foreign-issued stablecoins.
A CoinPost story claims that the country’s Financial Services Agency would revise Cabinet Office rules and publish guidelines for the use of the aforementioned stablecoins in 2023, therefore, lifting the prohibition on their usage and circulation. In accordance with the upcoming “Revised Payment Services Act,” which is scheduled to take effect in 2023, new rules and standards will be implemented at that time.
FSA Will Impose Per-Transaction Cap of $7.5k for Money Transfers
A maximum of one million Japanese yen, or around $7,500, may be sent in a single transaction when utilizing stablecoins for remittances.
Japanese stablecoin distributors will also be obligated to safeguard assets and provide enough collateral. The same distributors that facilitate transactions in stablecoins will also follow rigorous anti-money-laundering and know-your-customer policies.
Preparations Are Being Made for Web3 in Japan
After the Terra ecosystem collapsed in June, sending its algorithmic stablecoin of UST to zero, Japan acted swiftly to adopt stablecoin legislation. Therefore, the Japanese Parliament had originally agreed on a law that would have prohibited non-banking entities from issuing stablecoins. Stablecoins were intended to be issued and distributed only by banks and other reputable financial organizations.
Originally scheduled to go into effect in 2023, the legislation is now being reconsidered in light of the Japanese government’s apparent enthusiasm for Web3 adoption.
Japan’s Prime Minister Fumio Kushida made an announcement favoring NFTs, the Metaverse, and the Web3 sector as a whole at the beginning of October. Prime Minister Kushida also emphasized the need of enlisting and keeping on board local entrepreneurs who are developing Web3 ventures. Therefore, companies have the opportunity to grow in value thanks to the digital space.