Circle to consider issuing a stablecoin in Japan

japan flag japan flag crypto bitcoin
japan flag japan flag crypto bitcoin

USDC issuing company Circle plans to launch a “stablecoin” in Japan. This was stated by co-founder and CEO of the firm Jeremy Allaire in an interview with CoinDesk.

He expressed interest in the jurisdiction amid the release of new rules governing stablecoins. In his opinion, if this asset class is used in cross-border trading, the country will become an important market for the cryptocurrency industry.

A bill passed in June 2022 would require stablecoins in Japan to be pegged to the yen or other legal tender and guarantee holders the right to redeem them at face value.

The head of Circle did not elaborate on the details of the potential issuance of stablecoins, but noted that the company is interested in partnering with the third largest economy in the world.

In March, three Japanese banks — Tokyo Kiraboshi Financial Group, Minna no Bank and The Shikoku Bank — announced the start of testing “stable coins” based on the Japan Open Chain blockchain.

After the collapse of Terra in 2022, the authorities adopted a series of restrictive measures against stablecoins aimed at protecting investors. However, the government plans to allow the listing of assets issued outside the country on local exchanges.

Recall that in January, the Japanese Financial Services Agency turned to global regulators with a proposal to treat the cryptocurrency industry as strictly as banks.

On June 1, the so-called “Travel Rule” began to operate in the country from FATFinvolving the monitoring of crypto transactions in order to combat money laundering.

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