- Circle, a leading stablecoin issuer, is eyeing Japan as its next market for expansion.
- Circle shows interest in forming partnerships as Japan passes stablecoin regulation.
- Circle’s CEO, Jeremy Allaire, shares his insights on the country’s regulatory changes.
Circle, a stablecoin issuer, is considering issuing a stablecoin in Japan. The Japanese government recently passed legislation that regulates stablecoins, and this new law has caught the attention of Circle’s co-founder and CEO, Jeremy Allaire. In an interview, Allaire mentioned that if stablecoins are widely used for international trade and global transactions, Japan could become a significant market for them.
Japan’s stablecoin bill is important because it establishes a framework for the use of stablecoins from other countries. Allaire sees this as a positive step taken by the government and the Financial Services Agency. Circle is interested in forming partnerships in Japan, and Allaire even visited the country recently.
Under Japan’s revised Payment Services Act, stablecoins backed by legal tender are now recognized as an “electronic payment method.” This means that stablecoins can be issued and used in Japan.
Issuers of stablecoins in Japan are subject to strict regulations. These rules require stablecoins to be tied to the Japanese yen or another recognized legal tender, and they must ensure that holders can redeem them at their stated value. Stablecoin issuance in Japan is limited to licensed financial institutions, including banks, money transfer agents, and trust companies.
The Financial Services Agency of Japan lifted the ban on overseas stablecoins in December of last year, allowing companies like Circle to explore opportunities in the Japanese market.
Not only Circle, but other prominent financial institutions in Japan are also delving into the world of stablecoins. One such example is Mitsubishi UFJ Trust and Banking Corporation, which has revealed its intentions to introduce its very own stablecoin platform named Progmat.
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