Catenaa, Friday, February 21, 2025- Japan Financial Services Agency (FSA) is set to approve significant regulatory reforms for stablecoins and crypto brokerage firms, aiming to ease market entry and enhance user protections.
The FSA has endorsed recommendations from a working group proposing a new category of “intermediary” crypto businesses. This change would streamline regulations for brokerages, which critics say face excessive licensing requirements. The reform could attract gaming firms and wallet operators to the industry.
The agency is also considering policy changes that allow stablecoin issuers to use short-term government bonds and fixed-term deposits as collateral, with a 50% cap. This move is intended to balance liquidity and stability.
Additionally, new safeguards are being considered to prevent situations like the 2022 FTX collapse, ensuring Japanese customers’ assets are protected even if overseas parent companies go bankrupt.
The FSA is now expected to seek legal amendments to the Payment Services Act and Trust Business Act. The reforms come amid concerns that Japan’s strict regulations have driven crypto firms abroad.
