Providing a safety net for investors, Japan’s parliament on Friday passed a legal framework around stablecoins.
The monumental move comes in the wake of last month’s terraUSD collapse.
Drafted by Japan’s Financial Services Agency (FSA), the bill was initiated in late 2021, then accepted by the House in March this year and now passed the House of Councilors plenary session by a majority voting in favor.
The legislation clarifies the definition of stablecoins, which is now considered as digital money in Japan. It therefore must be linked to the yen or another legal tender, to guarantee holders the right to redeem them at face value.
With the law coming into effect within a year’s time, Japan is now the first major economy to pass such a law specific to stablecoins.
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Source: Igaming
