Japanese Financial Services Agency Green described reforms in a report, which will reduce the rules for stabechoin and crypto brokerage.
According to local media coincidenceThe FSA has approved the AA report from a working group, recommending policy changes, which when implemented, will reduce the crypto rules related to stabelin and brokerage in Japan.
The proposed amendment affects two main payment-related laws, Trust Business Act and Payment Services Act in the country, as Cryptocurrency is still classified as a digital payment tool under local rules. After receiving criticism from local crypto firms, who say that Japan’s Crypto rules are very strict, the government’s purpose is now easy to handle crypto assets for businesses.
One of the policy changes involves an improvement in one of the policy changes that will allow stabechoin to be supported by a short-term government bonds and demand deposits in addition to fixed-term deposits. The working group recommended a 50% upper range on bonds and deposits, which can be used as a collateral for stabelcoin.
The work group claimed that the policy would be able to help issuers to “balance the balance between increased convenience and safety”, providing them more flexibility in managing money in many products. However, the report mentions that user may require more mechanisms to ensure safety.
Additionally, the proposal of the work group suggested that the government should create a new category for “mediated” crypto businesses or brokerage. Under the current law, firms acting only as brokers in the exchange of crypto assets are expected to meet the same registration requirements similar to the Crypto Exchange platforms operated in Japan.
This means that Crypto brokerage also needs to apply for virtual asset service provider license, like domestic crypto exchanges. Under the new recommendation, middlemen will be subject to their requirements and money-enter-londering obligations.
The report states that this regulatory change makes it easier for crypto firms to enter the Japanese market.
Earlier this month, the Japanese FSA announced that it was considering changing how cryptocurrency is classified under Japanese law. Financial sentiments plan to classify them as financial products similar to securities rather than payment equipment. The final decision will be allegedly declared in June 2025.
