Japan adopts law to regulate stablecoins for investor protection

Foreign coins' entry to face high hurdles as cryptocurrency rapidly grows

20220603 stablecoin

Under the law that has revised the payment services law, stablecoins can be issued by licensed banks, registered money transfer agents and trust companies.  © Reuters

NATSUMI IWATA, Nikkei staff writer, and KEITA SEKIGUCHI, Nikkei fintech editor

TOKYO -- The upper house of Japan's parliament passed a bill into law Friday to regulate stablecoins, or cryptocurrencies whose value is pegged to that of the yen, dollar or other currencies.

The new law is aimed at curbing financial system risks of stablecoins, which have a combined market value around the 20 trillion yen ($154 billion) level, to strengthen protections for investors.

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