Japan’s Crypto Bill: The Emperor Approves Crypto? 🇯🇵🚀

So, you thought Japan was all about sushi, sumo, and samurais? Think again! The Land of the Rising Sun is now rising in the crypto world too. The Cabinet, led by the Prime Minister himself, gave a big thumbs up to a proposal to tweak the Payment Services Act. 🤝

Now, here’s the deal: the bill, which got the green light from the Financial Services Agency (FSA), is all set to hit the National Diet. Yes, you heard that right! The bill aims to loosen the reins on stablecoins and crypto brokerages, making it a breeze for crypto companies to set up shop in Japan. 💼💼

But wait, there’s more! To get past the National Cabinet, the bill had to win over the majority of the Cabinet members. And once it gets the Cabinet’s nod, it’s off to the National Diet for some serious legislative action. 🏛️

Once inside the Diet, the bill goes through a rigorous process – committee examination, debates, amendments, and then it’s presented to the full chamber. If both chambers give it a yay, it’s off to the Emperor for a royal stamp of approval. Talk about a royal treatment for a crypto bill! 👑

What Changes Are Brewing in Japan’s Crypto Scene?

Here’s the juicy part: the bill lets stablecoins be backed by short-term government bonds and fixed-term deposits, not just demand deposits. But there’s a catch – only 50% of the collateral can be in government bonds and deposits. 📈📉

Currently, stablecoin issuers in Japan have to match the number of tokens circulating with cash deposits in regulated bank accounts. But this new rule gives them more wiggle room to use other assets like Japanese and U.S. government bonds. However, only specific types of bonds with a remaining maturity of three months or less qualify. 🎯

And guess what? The bill introduces a new category for “intermediary” crypto businesses or brokerages. Until now, crypto brokerages had to jump through the same hoops as crypto exchange platforms to operate in Japan. But under the new bill, intermediaries will follow their own set of rules and anti-money laundering obligations. 🕵️‍♂️💰

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2025-03-10 13:14