Circle to Issue Stablecoin in Japan Under New Rules

• Circle is considering issuing a stablecoin in Japan, given that legislation governing stablecoins took effect on June 1.
• The Japanese Payment Services Act certifies stablecoins backed by legal tender as an “electronic payment method” and allows their issuance.
• Major Japanese financial institutions have been exploring stablecoins, with Mitsubishi UFJ Trust and Banking Corporation announcing its plans to issue its own stablecoin platform, called Progmat.

Circle Interested in Issuing Stablecoin in Japan

Circle CEO Jeremy Allaire expressed interest in partnerships in the country, given that new rules governing stablecoins have come into effect. By Lavender Au Jul 6, 2023 at 1:18 a.m. UTC Updated Jul 6, 2023 at 3:54 p.m. UTC share on Facebook share on LinkedIn share on Twitter share on Facebook share on LinkedIn share on Twitter Circle is considering issuing a stablecoin in Japan, given that legislation governing stablecoins took effect on June 1, the payment services company’s co-founder and CEO Jeremy Allaire said. In an interview with CoinDesk Japan, Allaire said that if stablecoins become more widely used for cross-border trade, foreign currency transactions and global commerce, Japan will become an extremely large market.

Japan’s New Rules Governing Stablecoins

Japan’s stablecoin bill makes it one of the first countries to establish a framework for the use of overseas stablecoins, which Allaire considers “the most important thing the government and the Financial Services Agency have done.” He said that Circle is interested in partnerships in Japan, which he visited last month. Japan’s revised Payment Services Act certifies stablecoins backed by legal tender as an “electronic payment method” and allows their issuance. Stablecoin issuers will have to abide by tough rules. Stablecoins must be pegged to the yen or other legal tender and guarantee holders the right to redeem them at face value. Only licensed financial institutions like licensed banks, registered money transfer agents and trust companies will be able to issue stablecoins. The country’s Financial Services Agency moved to lift a ban on overseas stablecoins in December last year.

Circle Obtains License from Singapore

Circle recently obtained a Major Payment Institution (MPI) license in Singapore, which allows it to offer digital payment token services, cross-border money transfer services and domestic money transfer services in the city-state..

Mitsubishi UFJ Trust Launching Progmat Platform

Major Japanese financial institutions have been exploring stablecoins, with Mitsubishi UFJ Trust and Banking Corporation announcing its plans to issue its own stablecoin platform called Progmat..

SEC Unlikely To Approve Bitcoin ETF

SEC Approval of Spot Bitcoin ETF Is Unlikely to Be a Game Changer for Crypto Markets: JPMorgan NFT Art Museum Donations? The Pros and Cons for Your Tax Bill Trump Digital Trading Card Project Mints NFTs for Winners of Prizes Read more: Japan Embraces Web3 As Global Regulators Grapples With Regulatory Uncertainty