Japan’s financial regulator, the Financial Services Agency (FSA), has approved a project by the country’s largest financial institutions to jointly issue yen-backed stablecoins.
On a Friday statementThe Financial Services Authority (FSA) has announced the launch of its “Payments Innovation Project” as a response to progress made in “using blockchain technology to enhance payments”. The initiative includes Mizuho Bank, Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corporation, Mitsubishi Corporation and its financial arm and Progmat, MUFG’s stablecoin issuance platform.
The announcement comes on the heels of recent reports that these companies plan to modernize corporate settlements and reduce transaction costs through a yen-based stablecoin project built on MUFG Progmat’s stablecoin issuance platform. The respective organizations serve more than 300,000 corporate clients.
The regulator noted that starting this month, companies will begin issuing stablecoins for payment. The initiative aims to improve user convenience, enhance the productivity of Japanese companies and innovate the local financial landscape.
Related to: The Japanese regulator is proposing a comprehensive overhaul of cryptocurrency rules in line with securities law
Participating companies are expected to ensure that users are protected and informed about the systems they use. “After completing the pilot project, the Free Syrian Army plans to publish the results and conclusions,” the announcement stated.
The announcement follows the launch of the first Japanese yen-backed stablecoin by Tokyo-based fintech company JPYC on Monday, along with a dedicated platform. The company’s president, Noriyoshi Okabe, said at the time that seven companies were already planning to integrate the new stablecoin.
Related to: Japanese Finance Minister endorses cryptocurrencies as a way to diversify investment portfolio
Japanese regulators are focusing on cryptocurrencies
Recently, Japanese regulators have been trying their best to set new rules for the cryptocurrency industry. So much so that Bybit, the world’s second-largest cryptocurrency exchange by trading volume, announced that it would temporarily halt new user registrations in the country while it adapts to the new conditions.
Local regulatory bodies appear to be opening up to the industry. Earlier this month, it was reported that the Financial Services Authority is preparing to review regulations that could allow banks to acquire and hold cryptocurrencies such as Bitcoin (BTC) for investment purposes.
Meanwhile, it has also been reported that the Securities Regulatory Authority of Japan is working on regulations to ban and punish insider trading of cryptocurrencies. After this change, the Japan Securities and Exchange Commission will be authorized to investigate suspicious trading activities and impose fines on violators.
magazine: Stablecoins in Japan, China and India Consider Cryptocurrency Tax Changes: Asia Express
The post Japan’s FSA Backs Major Banks’ Joint Yen Stablecoin Rollout first appeared on Investorempires.com.
