The Japanese cabinet offered Green to revise the payment service law.
According to a press release issued by the state’s financial service institutions, the bill was already approved by the cabinet and was submitted to the national diet the same day. The bill was previously approved by the FSA, and it can be easier for encryption companies to enter the Japanese market.
In order for the bill to pass the national cabinet, a number of votes must be received from the members of the cabinet who attended the meeting. The cabinet is led by the Japanese Prime Minister, and the cabinet plays an important role in determining the agreement as the cabinet operates the cabinet according to the principle of collective responsibility. Once approved, the bill is officially submitted to national diets for legislative discussions and voting.
When it passes through the diet, the bill is assigned to the relevant committees that are investigated, discussed and potentially modified before being introduced into the entire chamber. If the House of Representatives and the House of Representatives approve the bill, they will be sent to the emperor for the formalization of the law and eventually enacted.
What are the potential changes in Japan’s encryption regulations?
This bill allows you to support Stablecoins with short -term government bonds and fixed deposits as well as demand deposits. This provision also has a 50%upper limit on government bonds and deposits that can be used as a collateral for Stablecoins.
In the press time, Japan’s Stablecoin issuer must match the amount of circulating tokens with the cash deposit of the regulatory bank account. The new rules are more flexible to use other assets, such as Japanese and US government bonds. However, only certain types of bonds can be used, including bonds with three months of maturity.
The bill will also create a new category for the “brokerage” encryption business or brokerage. In Japan, it can only be operated in the country only if the encryption brokerage company meets the same registration requirements as the encryption exchange platform.
This means that the encryption broker must apply for a virtual asset service provider license, as with domestic encryption exchange. In accordance with the new bill, the broker does not clump together with the exchanges that operate differently, and complies with their own requirements and money laundering obligations.