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Japan's Stablecoin Regulations Pose Challenges for Issuers

Japan's Stablecoin Regulations Pose Challenges for Issuers

Cointime2023/10/25 20:36
By: Cointime

Japan has taken the lead in regulating stablecoins, implementing a stablecoin law in June. The regulations aim to address concerns about the assets backing stablecoins and their accessibility. Only banks, trust companies, and fund transfer services are allowed to issue stablecoins in Japan, and stablecoin issuers must establish a trust within the country to hold the assets. However, the strict regulations have made it challenging for companies to issue yen-based stablecoins due to the low interest rate for Japanese bank deposits and high compliance costs.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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