New York, Thursday, November 07, 2024 – Japan’s primary crypto trade association, the Japan Virtual Currency Exchange Association (JVCEA), has announced plans to self-regulate stablecoins, aiming to build public trust and strengthen oversight in the burgeoning sector.
The JVCEA, already recognized by Japan’s Financial Services Agency (FSA) for its regulatory role in the crypto exchange industry, now seeks to expand its scope to cover stablecoins and related electronic payment instruments.
The JVCEA’s self-regulatory initiative aligns with Japan’s recent Payment Services Act amendments, which classify fiat-pegged stablecoins as “instruments of electronic payment.”
The JVCEA will collaborate with the FSA to establish screening processes for operators of fiat-pegged digital currencies. The association stated that it would focus on “electronic payment instruments trading” and “funds transference,” marking a broader regulatory reach beyond traditional crypto exchanges.
The move comes as several Japanese companies, including Sony’s banking division and Binance Japan, have announced plans to issue stablecoins.
With the JVCEA’s guidance, Japan’s stablecoin sector is expected to expand, bolstered by a regulatory framework that prioritizes user protection and market integrity.
Observers anticipate the issuance of Japan’s first stablecoin by the end of the current financial year. The JVCEA aims to harmonize regulatory practices for crypto assets and stablecoins, enhancing user and investor protection while supporting the sector’s growth+.
