Japanese Cryptocurrency Market
The cryptocurrency market in Japan falls under the regulation of Fund Settlement Law. It defines all virtual currencies. The law notes that virtual currencies are means of payments that don’t fall under the consumption tax law. The payment service act requires cryptocurrency market players to register with the FSA to operate legally. The act came into life in April 2017 and its aim is to control the cryptocurrency market and the people involved.
A Further Clarification
The world has steadily accepted the use of stablecoins. However, the Financial Services Agency defines these coins in a manner that follows the Japanese law. Hence, this definition is not meant to be a global definition but the one that suits the needs of the Japanese actors.
The regulator clarifies that “In principle, stablecoins seen as currencies don’t fall into the groups of virtual currencies.” This is because of the Japanese Payment Service Act. The FSA continues to clarify that firms do not register to issue stablecoins because of the nature and characteristics of these coins.
The regulator also notes a few things that the companies should know. For example, the firms need to register as the provider of Prepaid Payment Instrument. They should also register as the provider of Funds Transfer Service according to the Payment Service Act. However, the firm should only register when virtual currency provider brokers trade in stablecoins.
GMO Stable Virtual Currency
Earlier in October 2018, the Japanese Internet leader GMO stated that it was ready to provide its stable collection of virtual currency. This is clear due to the provision of the company’s full-scale plan of releasing these coins.
Its coins function like one of the 16 legal crypto exchanges in Japan.
The country also has other three crypto money which FAS made legal. Japan seems to have flexible laws that allow the use of online money to make most transactions. There are other crypto exchanges you can find in Japan too.
Stablecoin is not cryptocurrency! They are different means of making transactions in Japan and this is just another mean. So, people should not wonder whether they are in a group of cryptocurrencies.