{"id":71182,"date":"2022-12-08T13:04:23","date_gmt":"2022-12-08T11:04:23","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=71182"},"modified":"2025-09-08T07:00:14","modified_gmt":"2025-09-08T04:00:14","slug":"japanese-financial-regulator-recommends-restricting-algorithmic-stablecoins","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/japanese-financial-regulator-recommends-restricting-algorithmic-stablecoins\/","title":{"rendered":"Japanese financial regulator recommends restricting algorithmic stablecoins"},"content":{"rendered":"<p>The Financial Services Agency (FSA) of Japan has recommended restricting the use of algorithmic stablecoins within the country. This was stated by Tomoko Amaya, the agency&#8217;s Deputy Foreign Minister, <a href=\\\"https:\/\/www.fsa.go.jp\/en\/news\/2022\/20221207\/01.pdf\\\">\u0440\u0430\u0441\u0441\u043a\u0430\u0437\u0430\u043b<\/a>.<\/p>\n<p>The official noted that the recommendations apply to assets that could become \u201cglobal stablecoins.\u201d In the FSA\u2019s view, the latter should not use algorithms to maintain a fixed exchange rate.<\/p>\n<p>The agency noted that \u201cstablecoins\u201d are exposed to the risk of a bank run. To avert this, regulators should \u201ctake political measures to ensure redemption at par and price stability.\u201d<\/p>\n<p>Amaya also stressed the importance of oversight of custodial-service providers, disclosure by issuers of digital assets, and market participants&#8217; compliance with anti-money-laundering and counter-terrorism financing rules.<\/p>\n<p>The FSA&#8217;s approach to regulating stablecoins and crypto-assets is based on existing statutes. They do not mention algorithmic \u201cstablecoins,\u201d though there is a distinction between \u201ccrypto-assets\u201d and \u201cstablecoins modeled on digital money.\u201d<\/p>\n<p>In June, the Japanese Parliament passed a bill<a href=\"https:\/\/u1f987.com\/en\/news\/japan-passes-law-recognising-stablecoins-as-digital-money\"> recognized stablecoins as digital money<\/a>. It will come into effect one year after approval.<\/p>\n<p>Earlier in October, authorities in the country<a href=\"https:\/\/u1f987.com\/en\/news\/media-japan-to-tighten-regulation-of-the-crypto-industry\"> amended six foreign-exchange laws as part of anti-money-laundering measures<\/a>.<\/p>\n<p>Read ForkLog&#8217;s Bitcoin news on our <a href=\\\"\/\/telegram.me\/forklog\\\"\u201d\\\" target=\\\"\u201c_blank\u201d\\\" rel=\\\"\u201cnofollow\u201d noopener\\\">Telegram<\/a> \u2014 cryptocurrency news, prices and analytics.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Japanese Financial Services Agency (FSA) has recommended restricting the use of algorithmic stablecoins within the country, deputy foreign minister Tomoko Amaya said.<\/p>\n","protected":false},"author":1,"featured_media":71183,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[135,36,807],"class_list":["post-71182","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-japan","tag-regulation","tag-stablecoins"],"aioseo_notices":[],"amp_enabled":true,"views":"22","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/71182","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=71182"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/71182\/revisions"}],"predecessor-version":[{"id":71184,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/71182\/revisions\/71184"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/71183"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=71182"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=71182"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=71182"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}