There are currently no crypto exchanges registered with Japan’s Financial Services Agency that offer stablecoins like USDT or USDC for trading.
Major cryptocurrency regulations relating to the usage of stablecoins like Tether (USDT) or USD Coin are being reconsidered by Japanese officials.
According to the local news agency Nikkei, Japan’s Financial Services Agency (FSA) will end its ban on the domestic distribution 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 trading. International remittances may become quicker and more affordable if stablecoin payment expands, the report said.
According to the FSA, more regulations regarding anti-money laundering controls will be necessary in order to permit stablecoin distribution in Japan. On Monday, the authorities began gathering feedback on ideas for easing the stablecoin restriction in Japan.
As it was initially disclosed, a bill 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 measure will have a significant impact on cryptocurrency trading services offered in Japan.
As of November 30, 2022, none of the 31 Japanese exchanges registered with the FSA, including companies like BitFlyer and Coincheck, were handling stablecoin trading, according to official data.
According to data from CoinGecko, BitFlyer, one of the biggest cryptocurrency exchanges in Japan, trades a total of five cryptocurrencies at the time of posting, including Stellar, Bitcoin Cash, and Bitcoin.
Currently, the Japanese government has been working hard to develop regulations relating to crypto.
Japanese ruling party’s tax committee approved a proposal on Dec. 15 to remove tax requirements for crypto firms issuing tokens on paper gains. Prior to this, local regulators also advised against using algorithmic stablecoins like Terra USD (UST).