Japanese regulators are reportedly reconsidering the ban on trading in stablecoins like USDT and USDC in the new year. Right now, there are 31 cryptocurrency exchanges registered with Financial Services Agency (FSA), the country’s financial sector regulator. None of them all trading in foreign stablecoins.
According to a report in Nikkei, FSA will allow the distribution of stablecoins from overseas markets through registered crypto exchanges.
The regulators are planning to follow an upper limit in stablecoin remittances and asset preservation by deposits. They believe the use of stablecoins can make international remittances cheaper and faster.
In June 2022, Japan banned stablecoin issuance by non-banking institutions through a bill in parliament. FSA has started receiving feedback on its proposal to allow foreign-issued stablecoins in the country. One of the changes in regulations it will call for will be in Anti-Money Laundering controls.
Allowing stablecoin trading on crypto exchanges is likely to significantly impact the crypto trading landscape in the country, marked by the presence of entities such as BitFlyer and Coincheck.
