Circle looking to issue stablecoin in Japan under new stablecoin lawCircle, the issuer of stablecoin USDC, has announced that it is considering issuing a stablecoin in Japan. In an interview with CoinDesk Japan, Jeremy Allaire, the Circle CEO, mentioned that Japan will grow into a substantial market if stablecoins are widely used in international transactions and global commerce. The bullish statement comes after Japan’s announcement on introducing stablecoin guidelines.
Circle seizes opportunity under new stablecoin law
The Japan stablecoin bill took effect on June 1, making the country one of the first to establish a framework for overseas stablecoin use. According to Allaire, the move is the most crucial thing implemented by the government and the Financial Services Agency. To this effect, he highlighted that Circle is interested in Japanese partnerships.
Japan revised its Payment Services Act to certify stablecoins backed by legal tender in June 2022. In December of the same year, the Financial Services Agency called off a ban on stablecoins issued overseas. The stablecoins are now recognized as an “electronic payment method” and can be issued. Under the new guidelines, stablecoin issuers have to abide by tough rules. The issued stablecoins must be pegged to the Yen or another legal tender so holders can redeem them at face value. In addition, only licensed financial institutions such as licensed banks, trust companies, and registered money transfers can issue stablecoins.
The new regulation has also offered an attractive proposition for institutions. So far, Mitsubishi UFJ Trust and Banking is looking to issue Progmat Coin, a stablecoin allowing users to buy NFTs and digital assets. Along with Tokyo Kiraboshi Financial Group and Shikoku Bank, Minna Bank also intends to launch its stablecoin.
Circle’s expansion into Asia
Circle has been making major moves in Asia to grow its presence. Last month, it acquired the Major Payment Institution license from the Monetary Authority of Singapore. Due to the license, Circle Internet Singapore can now provide digital payment token services and money transfer services in the city-state.
The company is not the only one with its eyes set on Asia. Gemini is planning to hire 100 more people to boost its Asian workforce. Another company, FalconX, has also applied for the Singapore digital token license to venture into Asia.
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