Circle Contemplates Launching Stablecoin in Japan Citing Clear Regulations
Summary: Circle, the issuer of USDC stablecoin, is considering launching a stablecoin in Japan after the implementation of the stablecoin law earlier on June 1. Japan is one of the first nations to provide a framework for international stablecoin usage. Stablecoins, backed by legal money, are recognized as an electronic payment method.
Jeremy Allaire, co-founder and CEO of Circle, a payment services firm, has said that the company is contemplating launching a stablecoin in Japan after the implementation of the stablecoin law earlier on June 1.
Eyeing Massive Market
If stablecoins gain traction for international trade, foreign currency transactions, and worldwide business, Allaire predicts Japan will become a massive market.
Allaire called Japan’s stablecoin law “the most important thing the government and the Financial Services Agency have done.” This is because Japan is now one of the first nations to provide a framework for the usage of international stablecoins.
Stablecoins as Legal Payment
While in Japan last month, he expressed interest in forming collaborations on behalf of Circle. Stablecoins backed by legal money are recognized as an “electronic payment method” and their issue is authorized under Japan’s amended Payment Services Act.
There will be strict regulations that stablecoin issuers must follow. Stablecoins are digital currencies that are backed by a fiat currency such as the Japanese yen or another major currency. Stablecoins will be issued only by legally authorized financial institutions.
Japan After Singapore
In December of last year, the Financial Services Agency of the nation took steps to reverse the prohibition of foreign stablecoins. In order to provide its digital payment token services, international money transfers, and domestic money transfers to residents of Singapore, Circle has secured a Major Payment Institution (MPI) license in the country.
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On the other hand, Mitsubishi UFJ Trust and Banking Corporation, a major Japanese financial institution, has announced that it would create its own stablecoin platform dubbed Progmat.