The Financial Services Agency of Japan (FSA) has decided that cryptocurrency is no joke, and it's time to restore order. In this regard, Japanese officials, likely inspired by something very conservative, have approved new regulations for stablecoins. The main idea is simple: less crypto-anarchy, more 'traditional' financial instruments.
Why? Well, because people started to worry. It turns out that if a foreign exchange suddenly goes bankrupt 'unexpectedly', users could be left with what? Right, with digital scraps of paper and tears. To prevent this from happening, the FSA decided to give stablecoin issuers a bit more financial flexibility, but not so much that they would feel too free.
Now, in addition to boring bank deposits, reserves of stablecoins can be held in short-term government bonds and time deposits. However, no more than 50%, because someone at the FSA is clearly afraid that crypto enthusiasts will start earning too successfully.
But that's not all! Japanese stablecoin issuers now have to implement 'additional protection mechanisms'. What kind? Who knows! The main thing is that users feel safe, but not too relaxed.
Finance Minister Katsunobu Kato apparently cares a lot about the sleep of Japanese crypto traders. He confidently stated: 'I want to create an environment where users can safely use convenient money transfer and settlement services.' Sure, because before, users were just pressing the 'send' button with trembling hands, not knowing whether their money would reach the recipient or evaporate into a digital vacuum.
And to make life even easier for everyone, the FSA has conceived a new category of 'intermediary business'. It's a way of saying: 'Okay, we understand that regulating crypto is an endless quest, but let's at least simplify life a little for those who just conduct transactions without holding assets.' Additionally, officials will slightly loosen anti-money laundering requirements — but only for the chosen ones, of course.
In general, everyone is satisfied: the government — because it now holds the cryptocurrency sector even more firmly in its hands; stablecoin issuers — because at least something has been allowed; users — because... well, they probably just have to come to terms with it.
