The Japanese Parliament has passed a bill recognizing stablecoins as digital currencies. He writes about Bloomberg.

According to the document, “stable coins” must be pegged to yen or other legal tender and guarantee their holders the right to use them at face value.

This interpretation means that only licensed banks, money transfer providers, and trust companies can act as stablecoin issuers.

The law will enter into force in the summer of 2023.

The Japan Financial Services Agency has pledged to develop rules for stablecoin issuers.

As a reminder, currently Mitsubishi UFJ Financial Group and Sumitomo Mitsui Trust are preparing stablecoin projects that meet future regulatory requirements. Similar plans were reported by USDC co-issuer Circle.

Earlier, the UK Treasury announced its plans to legalize stablecoins. This move aims to designate the country as a digital asset-friendly jurisdiction.

then executive director FCA Sarah Pritchard called for the collapse of TerraUSD to be considered while working on the regulatory framework for the industry.