Japan and Zuid -Korea go quickly to create clearer rules for stablecoins as the global interest in digital currencies grows.
Stablecoins are cryptocurrencies that are designed to maintain a stable value by linking to Fiat currencies, raw materials or other assets. Their use in payments, trade and Defi is quickly expanded, with predictions that suggest that the market could grow into the trillions in the coming years.
Japan Eyes First Yen-Stunder Stablecoin
In Japan, the Financial Services Agency (FSA) is revised plans for a Yen-Pegged Stablecoin for cross-border payments, business transactions and Defi.
The Tokyo-based fintech company JPYC leads this project. The company plans to register in August as an operator of money transfer and shortly thereafter launch the sale of Token.
According to reportJPYC plans to support the Stablecoin with liquid assets, including bank deposits and government effects, to ensure that it remains closely tied to the yen. The company wants to spend approximately 1 year of 1 trillion yen (around $ 6.78 billion).
In addition, token will be made available to individual users, companies and institutional investors, who offer a regulated alternative to various financial activities.
South Korea prepares the legislation on the Stablecoin
On the other hand, it is reportedly expected that the South Korea’s Financial Services Commission (FSC) will submit a Stablecoin regulations to the national meeting in October.
Legislator Park Min-Kyu has confirmed that legislators have already received briefings on the framework. Once accepted, the legislation will define the requirements for issuing stablecoins, managing collateral and maintaining internal risk procedures.
The proposed rules are part of the broad effort of South Korea to regulate digital assets. Werels in the industry note that local banks are already preparing to enter the market once a clear legal framework has been established, which indicates a strong institutional interest.
In the meantime, the efforts of Japan and South Korea are part of a global trend of legal frameworks that are introduced in large economies such as the US, Europe and Hong Kong to supervise the tokens in this rapidly rising sector of the crypto industry.
