Japanese regulators are reconsidering lifting the ban on cryptocurrency restrictions related to foreign stablecoins such as Tether (USDT) and USD Coin (USDC) in 2023 according to reports by local news agencies.
According to reports by local news agency Nikkei, the Financial Services Agency (FSA) of Japan is to reconsider major cryptocurrency strictions related to the distribution of foreign issued stablecoins in 2023. The report indicates that the new stablecoin regulations in the country will allow local exchanges to handle stablecoin trading under the condition of asset preservation by deposits and an upper limit of remittance. The report notes:
If payment using stablecoins spreads, international remittances may become faster and cheaper.
In June 2022, Japan’s parliament passed a bill to ban stablecoin issuance by non-banking institutions. The FSA said that by now allowing stablecoin distribution in Japan will also necessitate additional regulations related to Anti-Money Laundering controls. The FSA’s most recent announcement will have a major impact on crypto trading services offered in the country as currently no local exchanges are permitted to provide trading in stablecoins such as USDT and USDC. None of the 31 Japanese exchanges registered with the FSA were handling stablecoin trading as of November 30, 2022, according to official data.
Japan Eases Corporate Tax Rates for Token Issuers
Japan’s news on the lift of the ban on stablecoin issuance comes not long after it passed other very bullish news on cryptocurrencies. Earlier in the month, Japan’s ruling Liberal Democratic Party approved a proposal that would exempt companies issuing cryptocurrencies from taxes on unrealised capital gains for tokens they retain on their books. The proposal aims to improve business conditions for companies issuing crypto as they are currently required to a pay a set 30% corporate tax rate on their holdings, regardless if they have realised a profit through a sale or not.
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