Japan’s strategy to safeguard crypto investors after Terra Crash
- Japan’s plan to safeguard crypto investors after Terra’s crash.
- The bill stipulates that only banks, authorized transfer agencies and trust firms can issue stablecoins.
- Japan’s action is part of a five-year effort to safeguard consumers who invest in crypto.
Prior to today’s House of Councilors plenary session, Japan’s Financial Services Agency (FSA) had developed the measure, which was originally unveiled in December 2021 and enacted by Parliament in March. The new legislation stated that stablecoins must be pegged to the yen or another legal money and ensure their holders the ability to exchange them at full value. Japan’s action is part of a five-year effort to safeguard consumers who invest in cryptocurrencies. It follows the shocking collapse of TerraUSD last month, which sparked a discussion as to whether the assets should then be regulated or simply abolished. After the collapse of TerraUSD, which resulted in multibillion-dollar losses from an ostensibly secure asset, governments are rushing to construct safeguards around stablecoins, a critical component of the crypto market. Japan has enacted a significant bill defining the constitutional basis of stablecoins, leapfrogging other nations in the rush to establish support systems around the assets whose tie to other currencies supports the wider crypto market. Fiat currencies like the dollar, euro, and pound, as well as precious metals like gold are used as the basis for the value of stablecoins. Stabilizing cryptocurrencies like Bitcoin, these tokens may also be used as a kind of value storage or currency. Tether’s dollar peg also slipped as a result of the collapse, further eroding investor trust in other stablecoins. Over billion has been taken out of circulation since the tragedy. This prompted several of the world’s big shots into thinking that stablecoin regulation may be precisely what the doctor ordered at this point. Read more Bitcoin News and get the last Bitcoin Price on article source: Japan’s strategy to safeguard crypto investors after Terra Crash
The bill stipulates that only licensed banks, authorized money transfer agencies, and trust firms may issue stablecoins, with the FSA adding that rules controlling stablecoin issuers would be developed in the following months.
Send bulk SMS with Bitcoin. We allways test the link in the message with each sending and if your link is broken or reported, the campaigns are automatically paused, and you must to manually resume the campaign after you fix the link.