Japan: Adopted stablecoin investor protection bill

On 3 June 2022, the "Bill to partially revise the Act on Fund Settlement to Build a Stable and Efficient Fund Settlement System" (Law No. 47) was adopted by the Japanese parliament. The legislation aims to protect investors and increase stability in cryptocurrency investments by defining and regulating stablecoins. The bill defines stablecoins as digital money if they are tied to the YPI or other legal tenders. Specifically, the bill states that only licensed banks, trust companies, and registered money transfer agents can issue stablecoins. Furthermore, investors are granted the right to redeem stablecoins at face value. The bill will enter into force in 2023 accompanied by implementation regulations by the Japanese Financial Services Agency. The bill does not apply to stablecoins already on the market or foreign overseas issuers.