Japan’s Financial Services Agency (FSA) plans to lift the ban on domestic circulation of foreign stablecoins like USD Coin (USDC) in 2023, according to Nikkei. report December 26th.
International payments could become faster and cheaper if stablecoins become more widely used, according to the report.
Local exchanges will be allowed to handle foreign stablecoin transactions “subject to deposit security and remittance caps.” Businesses are also expected to adhere to strict anti-money laundering measures.
According to media reports, the upper limit for remittances is 1 million yen ($7,500) in a single transaction. The FSA requires exchanges to collect personal information about their users, such as their name. Additionally, the regulator said it will start collecting feedback on the guidelines starting Dec. 26.
After the collapse of Terra UST, Japan is one of the first countries to pass a stablecoin bill to ensure investor protection. The Asian country’s stablecoin law states that local stablecoin issuers should be limited to financial institutions such as banks, trust companies and registered money transfer operators.
crypto exchange operating Japan has not listed any USD-backed stablecoins as of November 30.