Japan’s Financial Services Authority has drafted changes to the Payment Services Act applying to crypto-assets and stablecoins, including a 144-page document covering “Electronic Payment Instruments and Crypto-Asset Service Intermediary Business”. The most notable updates relate to stablecoins.
A topical issue is multi-jurisdictional stablecoins, especially given Europe’s MiCA regulations prescribe that such stablecoin issuers must keep reserves relating to EU users within Europe. One of the Japanese updates clarifies a similar requirement. It defines the assets to be held in Japan as the total liabilities less liabilities to non-residents.
While that would certainly apply to Japanese-issued stablecoins, offshore stablecoins present a different regulatory challenge. Foreign stablecoins can circulate in Japan, provided they are distributed via an intermediary with a special license. For example, Circle has an arrangement with SBI VC Trade.
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AloJapan.com