Japan’s biggest group of crypto exchanges and blockchain firms has announced its intention to start “self-regulating” stablecoins.
The body is named the Japan Virtual Currency Exchange Association (JVCEA). The association already regulates Japan’s crypto exchange sector, and polices issues such as token listing protocols.
Its role has been formalized by the nation’s top financial regulator, the Financial Services Agency (FSA).
Regulating Stablecoins: JVCEA Wants to Boost Public Confidence
According to the Japanese-language news outlets CoinPost and Nikkei, as well as an official JVCEA announcement, the association will work with the FSA on regulation-related matters.
The JVCEA will “screen operators” who handle fiat-pegged coins under the terms of the Payment Services Act.
The headquarters of the Financial Services Agency in Tokyo, Japan. (Source: ANNNewsCH/YouTube)In its statement, the body said that it has previously focused its attention on “cryptocurrency exchange businesses and cryptocurrency-related derivatives trading firms.”
But it will now broaden its scope, and focus on the “electronic payment instruments trading sector.”
The body also said that it will focus on “funds transference,” and has changed its Japanese name accordingly.
It added that it would not make any changes to the English-language version of its name. Nikkei wrote that the move had “created an environment” for stablecoin “issuance and distribution.”
Observers expect stablecoins to roll out in earnest in Japan next year after new legislation paved the way for issuance.
The JVCEA’s wording on “electronic payment instruments” reflects Japanese legal terminology.
The Payment Services Act classifies all stablecoins pegged to the value of legal tender as “instruments of electronic payment.”
“We aim to conduct harmonious self-regulatory activities while ensuring autonomy for firms related to cryptoassets and electronic payment methods.”
JVCEA‘We Will Protect Stablecoin Users’
The body spoke of its intention to boost trust in the stablecoin and crypto sectors and “comprehensively protect users and investors.”
Several Japanese business heavy hitters have already announced their intention to launch stablecoins.
These include Sony’s banking arm, which has already begun proof-of-concept pilots. Binance’s Japanese office is also planning a launch.
Nikkei wrote that there is a “strong possibility” that the first Japanese stablecoin will be issued before the end of the current financial year.
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