After the TerraUSD token’s downfall in May, Japan decided to pass a bill that would seek to regulate the cost of stablecoins.
Japan passes a bill that would protect investors when using stablecoins Source: depositphotos.com
According to Bloomberg, оn Friday, Japan’s parliament approved the passage of a bill that tantamounts stablecoins to digital money. By now these digital assets must be tied to the yen or another legal tender within the country. Only licensed banks can engage in the issuance of a stablecoin as well as trust companies.
The legislation won’t pay attention to the stablecoins from foreign issuers, such as BUSD or Tether that will be off the hook. The market capitalization of all stablecoins is about $160 billion, such top-notch digital assets like Binance Usd, Tether, and USD Coin are at the head of this list.
After the global crash of TerraUSD and the loss of tens of billions of dollars, the government wants to impose additional measures to protect investors. The bill will be eligible in a year, and in the next three months, there will be regulations that will protect holders of these digital assets within the country.
The stablecoin still runs on the Terra Classic blockchain. Previously the Terra community approved a plan to establish a new blockchain, which excludes the TerraUSD, или UST.
We’ve reported The Central African Republic aims to tokenize its in-country mineral products.
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