The Japanese cabinet has made a proposal to amend Green to amend the Payment Services Act, which will reduce the rules for stabechoin and crypto brokerage.
according to a Press release The bill issued by the country’s financial services agency, the bill has already been approved by the cabinet and was presented in the national diet on the same day. The bill was previously approved by FSA and possibly can make it easier for crypto firms to enter the Japanese market.
For a bill to pass through the national cabinet, he will have to get a majority vote from the cabinet members present in the meeting. The cabinet is headed by the Japanese Prime Minister, who plays an important role in determining the consensus, as the cabinet operates under the principle of collective responsibility. Once approved, the Bill is formally presented in the national diet for legislative debate and voting.
Once it passes through the diet, the bill is assigned to a relevant committee, where it is investigated, debated, and potentially modified, before it is introduced in the full chamber. If the House of Representatives and the houses of the councilors approve the bill, it is then sent to the Emperor for the ceremony, which will form the law formally and will eventually implement it.
What are possible changes in Japan’s crypto rules?
The bill will allow stabechoin to be supported by short-term government bonds and fixed-term deposits, only separate from demand deposits. This clause is also equipped with a 50% upper range of government bonds and deposits, which can be used as collateral for stabilcine.
At the press time, stablecoin issuers in Japan require the amount of tokens operated at 1: 1 ratio with cash deposits in regulated bank accounts. The new rule gives them more flexibility to be able to use other assets such as Japanese and American government bonds. However, only a few types of bonds can be used, including people with the remaining maturity of three months or less.
In addition, the bill will also create a new category for “mediator” crypto businesses or brokerage. In Japan, the Crypto brokerage firms can only work within the country if they manage to meet the same registration requirements as the Crypto exchange platforms.
This means that Crypto brokerage needs to apply for virtual asset service provider license, like domestic crypto exchanges. Under the new bill, middlemen will be followed by a set of their own requirements and the anti-laundering obligations will be followed, rather they will be clumped together with the exchanges that are operated separately.
