Japan to Limit Number of Stablecoin Issuers: Report
Main page Finance, Banking, Japan, Stablecoins, Regulations

Japan is going to limit a number of stablecoin issuers as part of global tougher financial restrictions, Nikkei has learned. According to the report, Japan's Financial Services Agency (FSA) plans to restrict issuance of stablecoins to banks and wire transfer companies in 2022.

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The FSA also seeks to tighten regulations to fight money laundering. Cryptocurrency business like wallet providers involved in stablecoin transactions will also be brought under the agency's oversight, Nikkei reports. The watchdog will reportedly require these intermediaries to meet obligations under Japan's law.

IMF Warns Stablecoins Are a Threat to the Global Economy

Earlier in November, Circle, the operator of the cryptocurrency USDC, announced plans to launch a stablecoin pegged to the Japanese yen. The launch will be conducted through the company's venture arm Circle Ventures. As part of expanding its presence in the Asian market, the company will also open an office in Singapore.

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