Japan's Approval of Stablecoin Law that Protects Investors

Japan’s Crypto Move; The sharp fall of USD (UST), the stablecoin of the Terra Blockchain ecosystem, pioneered the start of a new era in the cryptocurrency industry. Japan noted that they have passed the stablecoin law to protect investors.

Known for its interest in the cryptocurrency market, Japan took its place among the first major economies to introduce a legal regulation on stablecoins. This decision of Japan was evaluated after the events in the Terra Blockchain ecosystem. At its session today, the Japanese parliament announced that it has approved a bill that clarifies the legal status of stablecoins and defines them as essentially a digital currency. With this law, stablecoins should not be associated with the Yen or any other currencies, and their holders should not be guaranteed the right to use them at face value. The legal definition introduced by the passed law states that stablecoins can only be issued by licensed banks, registered money transfer businesses, and trust companies. With Japan's new regulation, stablecoins such as Tether will not be able to be equated with stablecoins, and cryptocurrency exchanges operating in Japan will not be able to list these cryptocurrencies. Finally, cryptocurrency exchange FTX announced that it has started operations in Japan. Japan's new stablecoin law, which makes regulations in line with the crypto industry, was supported by many. Stablecoins are cryptocurrencies in which the price is designed to be pegged to a cryptocurrency, fiat or exchange-traded commodities.