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Introduction of Stablecoins in Japan Amidst New Policy Activations

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USDC Circle issuer is said to be exploring the possibility of launching a stablecoin in Japan following the implementation of new cryptocurrency regulations in the Asian country.

In an interview with CoinDesk, Jeremy Allaire, co-founder and CEO of Circle, expressed his belief that Japan could become an important market for stablecoins, especially if they gain widespread acceptance in cross-border trade.

Allaire’s optimistic statement follows the implementation of new Japanese regulations governing stablecoin issuance on June 1.

While Allaire did not provide specific details about a potential stablecoin offering from Circle, he did confirm the company’s interest in forming partnerships within Japan, which is the third largest economy in the world.

In June 2022, the Japanese parliament passed a bill focused on stablecoins, which stipulates that these digital assets must be pegged to the yen or any other fiat currency. Additionally, the legislation ensures that stablecoin holders can redeem them at face value.

The bill further stipulates that stablecoins can only be issued through licensed banks, registered money transfer agents and trust companies, providing clarity and oversight to the market.

Circle is actively expanding its presence in Asia and recently achieved the milestone by obtaining a Major Payment Institution License from the Monetary Authority of Singapore.

This license enables Circle’s subsidiary, Circle Internet Singapore, to provide digital payment token services and domestic and cross-border money transfer services within Singapore.

Interestingly, Japan’s largest bank, Mitsubishi UFJ Financial Group, has also shown interest in the stablecoin. In June, the bank unveiled its Progmat Coin platform, designed to facilitate the issuance and trading of stablecoins.

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