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Stablecoins to face new restrictions in Japan

Only banks, wire transfer companies would issue currency-backed coins like Tether

TOKYO -- Japan is acting to limit the number of issuers of cryptocurrencies like Tether, which are backed by such reserve assets as the dollar or the yen, joining the U.S. in moving toward tougher restrictions on a growing segment of finance, Nikkei has learned.

So-called stablecoins are often pegged to a fiat currency to prevent the kind of volatility associated with Bitcoin and other leading cryptocurrencies. The Financial Services Agency seeks to propose legislation in 2022 to restrict issuance of stablecoins to banks and wire transfer companies.

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