Stablecoins also targeted by Japanese regulators

What is stablecoin?

Stablecoins are digital currencies that have the same attributes as fiat money. They are often tied to the dollar or euro exchange rate, gold, or other assets, including cryptocurrencies. Stablecoins were initially used by cryptocurrency users to save money in the case of a market crisis. If bitcoins grew more affordable, traders might exchange them in a couple of minutes without incurring losses. Without stablecoins, we would have to convert bitcoins or other cryptocurrencies into fiat. Sometimes such transactions are not available on all platforms, and often involve significant costs.

Japan increases control over digital assets

According to Reuters, three Japanese officials have stated that the government intends to increase control over digital assets. Some local observers, according to the report, feel that stablecoins, a type of cryptocurrency linked to fiat currency, might disrupt Japan’s financial sector. It is worth noting that in July 2021, Japan’s Financial Services Agency (FSA) established a section to supervise digital currency legislation. Furthermore, the Ministry of Finance was contemplating raising the resources needed.

A yen-based cryptocurrency is coming

However, not only is Japan considering stringent laws for stablecoin issuers. Treasury Secretary Janet Yellen has requested that the United States’ crypto-asset regulators begin regulating stablecoins. Since then, the President’s Financial Markets Working Group (PWG) has suggested that stablecoin issuers be subject to banking-style supervision.

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bit4you is an european crypto exchange platform. We are facilitating the transition between crypto currencies and traditional currencies such as euro.