Circle wants to release a new stablecoin in Japan
Circle may be looking to release a new stablecoin in Japan soon. The US company is known as a cooperation partner of Coinbase for the USDC. The Land of the Rising Sun is suddenly very interesting for the crypto industry due to a new law, while the USA is losing its attractiveness.
That’s why Circle wants to release a new stablecoin in Japan
Circle may want to issue a new stablecoin in Japan. This was recently explained by the managing director and co-founder of the US company, Jeremy Allaire, in an interview with CoinDesk Japan.
The background is a law that came into force on June 1 of this year. The so-called stablecoin law sets out clear guidelines for the issuance and handling of stablecoins. The decree represents a reversal for Japan’s politics, as it offers new opportunities for the island nation’s crypto industry.
In previous years, Japanese policy halted the industry in some areas. Foreign stablecoins were generally banned until December 2022. On crypto exchanges, users traded either yen or bitcoin .
Japan is one of only a few countries in the world that have issued specific regulations on stablecoins. Allaire is convinced that the land of the rising sun will become an important center of the industry if the current triumph of stablecoins continues.
Japan’s Payment Services Law allows stablecoins to be used as a means of payment and issued, at least when they are centralized tokens backed by fiat currency.
Allaire visited the Asian country last month as part of the new regulation. He and his company are interested in cooperation in Japan. He called the law “the most important step taken by the government and the Japanese regulator FSA.”
The company would have to follow strict rules
Circle would have to follow strict rules if the company wants to launch a stablecoin in Japan. So far, Circle is known for issuing the USDC, which it operates in conjunction with crypto exchange Coinbase. The amalgamation of both companies trades as Center .
By law, any eligible stablecoin must be backed by either the Japanese yen or a foreign fiat currency. The fact that Japanese legislation also accepts foreign currencies has been a special feature so far.
Only licensed financial institutions such as banks, financial service providers and trust companies are permitted to issue stablecoins.
In addition, users must always have the option to swap the stablecoin for the underlying fiat currency at a 1:1 ratio.
That Circle is considering launching a new digital product out of Japan is another indication of the regulatory conflicts in the US. The home location can increasingly rarely provide crypto companies with the desired opportunities to provide digital products.
Most recently, Circle acquired a financial service provider license in Singapore, allowing the company to provide digital tokens and cross-border payment services. After years of activity in the USA, partner Coinbase is now also networking internationally.
Coinbase opened a new office in Bermuda in May. The company is aiming for further quarters in Dubai or Abu Dhabi as well as in Great Britain.