Japan Implements New Rules to Safeguard Users in Stablecoin Market
Japan’s Financial Services Agency (FSA) has approved new measures to enhance user protection in the stablecoin market.
These measures allow stablecoin collateral to be backed by short-term government bonds and fixed-term deposits. Expanding options for issuers while capping the amount of new assets at 50%. The goal is to improve liquidity and profitability while ensuring user protection, especially in the event of a foreign-owned exchange’s bankruptcy.
The changes also include revisions to the Trust Business Act and the Payment Services Act. Along with the introduction of a new intermediary business category to ease regulatory requirements for non-custodial crypto businesses.
Clever Robot News Desk 23th February 2025
