Japan’s Financial Services Agency may remove the imposed ban from non-domestic stablecoins.
Japan is a technology adaptive country in the world and also remains aware to maintain the financial stability of the country. Because of the high volatility of Crypto assets, Japan tries to keep citizens away from Crypto investments with the help of strict rules. Every crypto trader needs to pay a 30% tax on Crypto holding regardless of profit or loss.
On 26 Dec, Japanese news media CoinPost reported that Japan’s Financial Services Agency is working to lift the ban that it imposed on foreign stablecoins.
Under the current Japanese laws, non-domestic stablecoins are not allowed in the Japanese Crypto market.
But if the Japanese government agency lifts the ban then a few particular numbers of stablecoins may enter the Japanese Crypto market and these may be USDT (Tether) & USDC (USDC) as a winner under the Japan’s jurisdiction.
And also in that situation, a domestic agency will manage the stablecoins supply in the Japanese market, and also there will be a threshold of 1 million yen ( $7,500) per transaction. And this rule may come into effect in 2023.
Just a few weeks ago, Japan’s Financial Services Authority (FSA) announced that it will categorise all the different types of stablecoins into different categories. The financial regulatory body took this decision to ensure the safety of the Crypto traders.
Reports noted that they will categorise algorithmic stablecoins in the list of crypto assets, which means algorithm-based stablecoins, for example, TerraUSD will be non-redemption stablecoins.
All these things are showing that Japanese government agencies are trying their best to prohibit the risks associated with Crypto assets.