Japan is establishing a legal framework for Stablecoins

Although some countries have decided to develop a friendly policy towards cryptocurrencies, there are still countries that have not been very friendly to cryptocurrencies. However, the latest information from around the world indicates that the Japanese parliament has decided to support stablecoins by the Japanese yen. Stablecoins have become more and more talked about since the infamous Terra (Luna) crash, as governments around the world have begun to take action to protect investors from repeated similar scenarios, and Japan seems to have become their flagship, as Bloomberg confirms.

The bill was approved by the Japanese government yesterday and in practice means that stable banks in Japan can now only be issued by licensed banks and trust companies. The new legislation does not take into account existing stable stocks covered by overseas assets, such as TetherUSD and others. The land of the rising sun will thus become one of the first major world economies to introduce a legislative framework around stablecoins and essentially define them as digital assets. This is another big step forward.