Japan Enacts Stablecoin Regulation Bill

Tokyo, June 3 (Jiji Press)--Japan's parliament on Friday enacted a bill to strengthen restrictions on "stablecoins," or cryptocurrencies pegged to legal tender, with the aim of protecting users and cracking down on money laundering.

The bill to revise the payment services law was approved at a plenary meeting of the House of Councillors on the day.

The revised law includes a new registration system for brokers trading and managing stablecoins and places trust companies, in addition to banks and fund transfer agencies, under the scope of regulation.

The revised law also requires identity verification for electronic gift cards and prepaid cards, which can be sent via email, if the amount sent exceeds 100,000 yen per transaction or 300,000 yen per month.

In addition, the law stipulates foreign exchange transaction analysis for the joint monitoring system being considered under the initiative of the Japanese Bankers Association to combat money laundering, and sets a permission system for the new operation.

[Copyright The Jiji Press, Ltd.]