In Japan the use of stablecoins like Tether (USDT) or USD Coin is now subject to certain significant cryptocurrency regulations that are being reviewed by Japanese officials.
Recently, the Japanese government has been working hard to develop legislation relating to cryptocurrencies. The tax committee of Japan’s ruling Liberal Democratic Party adopted a proposal on December 15 that would have exempted cryptocurrency companies from having to pay taxes on tokens
According to local news outlet Nikkei, Japan’s Financial Services Agency (FSA) will end its ban on the domestic circulation of foreign-issued stablecoins in 2023.
Under the terms of asset preservation through deposits and a maximum remittance limit, the new stablecoin legislation in Japan will permit local exchanges to handle stablecoin trade. International remittances may become quicker and more affordable if stablecoin payment expands, the research warns.
According to the FSA, further laws regarding anti-money laundering measures will be necessary in order to permit stablecoin distribution in Japan. On Monday, the authorities began gathering comments on ideas for easing the stablecoin restriction in Japan. As was previously reported, a law to prohibit stablecoin issuance by non-banking institutions was approved by the Japanese parliament in June 2022.
Given that there are currently no local exchanges offering trading in stablecoins like USDT or USDC, the most recent legislation will have a substantial influence on cryptocurrency trading services provided in Japan.