Japan’s FSA To Approve stablecoin Reform and Introduce New Trading Norms in 2025

Japan’s FSA has Great news for the stablecoin users finally! According to the latest news coming in, the FSA has approved a report that will make crypto regulations smoother. CoinPost also vouched for the policy in today’s post.  

Two primary policy changes are proposed as a part of the policy. Firstly, the first policy that will change is the Trust Business Act. The other one is the Payment Services Act.  

The local crypto operators have been complaining about some time about the extreme rigidity of the crypto rules at the local level. Hence, it’s time the government reconsiders how crypto assets will be handled going forward!  

The Policy Reforms  

Soon, the stablecoins will be backed up by temporary government bonds, and term deposits, alongside demand deposits. The advisory committee also suggested a 50% max limit on bonds and deposits, which will act as collaterals for the stablecoins.  

How Will the Policy Help Coin Trade in Japan? 

These policy upgrades will help the Japanese Crypto community to trade safely and seamlessly. Once fund management becomes flexible, other support mechanisms can come up in due course.  

Lastly, a new suggestion to create a separate window for intermediary crypto brokerages has also created an uproar. If this policy change works, the brokerage firms dealing in crypto exchange won’t have to do the same registration as the actual exchange platforms.  

Intermediaries will now follow their indigenous requirements and safety protocols.  

The Traders’ takeaway  

Traders can be excited as the FSA has responded to the policy change suggestions. Shortly, Crypto trading in Japan may undergo big changes.  

Going forward, cryptos may be registered as securities rather than payments in Japan. We’ll have to wait till June 2025 for the outcome.