Japan passes stablecoin bill for investors’ protection and the legal framework will take effect in a year as we can see more today in our latest cryptocurrency news.
Japan’s parliament passed a legal framework around stablecoins and provided a safety net for the investors in the wake of last month’s TerraUSD collapse which resulted in multi-billion losses. Japan is among the first economies to pass a speciifc law for stablecoins if the legislation comes into effect. The bill will provide more clarity around the definition of stablecoins that will be considered digital money and have to be linked to the yen or other legal tender that will guarantee holders a right to redeem.
Stablecoins can be issued by licensed banks and registered money transfer agents as well as trust companies so the bill doesn’t address the existing asset backed or algorithmic stablecoins but exchanges in Japan don’t list the stablecoins. Prepared by the Japanese Financial Services Agency, the bill was planned in 2001 and was accepted by the House, and was now passed by a majority of the House of Councilors plenary session. After the Terra collapse, the action by the Japanese court can help it against the crisis of the confidence in crypto. The stablecoin is a type of crypto whose value was related to the outside asset like the US dollar to stabilize the price.
Days after launching its first-ever OTC BTC derivatives to the institutional clients, Japan’s Nomura bank doubled down on crypto services and launched a new digital asset unit for the institutional investors. The financial giant will house a variety of digital asset companies underneath its subsidiary which will recruit 100 employees by the end of next year as per the sources in the Financial Times. The coverage revealed that Nomura’s executives will lead the new branch and most of the employees will be recruited outside and fifteen current company staff will get transferred to the unit. The bank expected the crypto sector to mature in time and to become better regulated which will make it more attractive for the institutional clients.
Over the past few years, countries around the world showed interest in central bank digital currencies but now, the Bank of Japan announced a new approach to the Digital Yen and stated that this is a developmental trajectory that will follow the steps of Sweden. The final decision will be made by 2026 as the BOJ Said.