Transfers using these stablecoins are restricted to 1 million yen ($7500) per transaction. According to Nikkei, Japan’s Financial Service Agency (FSA) will lift the ban on the local distribution of foreign stablecoins such as USD Coin (USDC) in 2023.
According to the report, as stablecoin usage spreads, international remittances may become faster and cheaper.
Local exchanges would be allowed to handle foreign stablecoin transactions “under the condition of asset preservation by deposits and upper limit of remittance.” The firms are also expected to adhere to strict anti-money laundering measures.
According to media reports, the remittances limit is one million yen ($7500) per transaction. The FSA will require exchanges to collect personal information about their users, such as names and addresses.
Aside from that, the regulator stated that it would begin collecting feedback on the guidelines on December 26.
Following the collapse of Terra UST, Japan was one of the first countries to pass a stablecoin bill to protect investors.
According to the Asian country’s stablecoin law, local stablecoin issuers must be financial institutions such as banks, trust companies, and registered money transfer agents. As of November 30, no crypto exchanges in Japan listed USD-backed stablecoins.
On Monday, the authority began collecting feedback on proposals to lift Japan’s stablecoin ban. As previously reported, Japan’s parliament passed legislation in June 2022 to prohibit non-banking institutions from issuing stablecoins.
Currently, none of the 31 crypto exchanges registered with Japan’s Financial Services Agency offer trading in stablecoins such as USDT or USDC.
The new stablecoin regulations in Japan will allow local exchanges to handle stablecoin trading subject to asset preservation through deposits and a remittance limit.
“If payment using stablecoins spreads, international remittances may become faster and cheaper,” the report notes.
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