The Japanese parliament has just passed a bill aimed at regulating stablecoins in the country following the recent collapse of the TerraUSD stablecoin, Bloomberg reports.
By passing this bill, which will come into force next year, Japan has become one of the first countries in the world to regulate stablecoins.
The document clearly defines what stablecoins are. From now on, they will be considered as digital money and must be pegged to the yen or another legal tender. In addition, holders must have the right to redeem them at face value.
We should bear in mind the fact that stablecoins can only be issued by authorized banks, registered money transfer agents and trust companies.
The bill, which has been developed by the Financial Services Agency (FSA), was planned in late 2021.