Cryptocurrency laws in Japan are being changed big time to help ease business. The scheme is approved by the government to grant flexibility to companies involved in the stablecoins as well as crypto brokerages. These changes could allow Japan’s crypto industry to grow, as well as ensuring safety for its investors.
Stablecoin issuers in Japan are right now required to hold a 1:1 ratio between stablecoin supply and bank cash reserves to back their coins. However, now the new rules allow for them to utilize up to 50% of such reserves towards short term government bonds or fixed term deposits. It allows companies to manage money better, while maintaining stability for the user.
Crypto brokerages are also getting some relief. Earlier, they had to play by the same stricter rules as crypto exchanges, and it was not easy to run as a crypto exchange. They will now be treated as “intermediary businesses.” Therefore they will need their set of rules, and they will not necessarily require the same tough exchanges. There are still anti money laundering laws they must follow.
Just like Mt. Gox and Coincheck of crypto, Japan has been strict with crypto regulations. However, the new rules suggest that the country is willing to support the industry and to protect investors at the same time. Such new regulations have already spawned major companies like Mercari, SBI Securities, and Monex Securities already preparing for crypto brokerage services.
Such adjustments would turn Japan into one of the most welcoming countries for crypto, bringing more businesses and investors into the market.
Also read: Bitcoin & Ethereum Price Predictions: BTC in Senate Reserves, ETH’s March 5 Outlook
