Japanese trust banks will be able to manage cryptocurrencies owing to new regulations in Japan.
The amendment is anticipated to go into effect this fall after a roughly one-month public comment period, the FSA announced.
Stablecoins backed by the Japanese yen will be available for issuance by banks, fund transfer businesses, and trust firms.
This fall, the Japanese Cabinet Office Ordinance will be revised, and trust banks in Japan will be permitted to store and manage cryptocurrencies. According to reports, Japan’s Financial Services Agency (FSA) is relaxing rules to let trust banks manage cryptocurrency.
In Japan, trust companies are given the exclusive right to store and manage crypto assets. This change was made to the regulation of the prefecture (first-level administrative divisions of Japan), which allows trust banks to handle individual operations. The storage and management of the trust banks will have licenses after the authorities approve the regulations.
New Japanese regulations will allow Japanese trust banks to manage cryptocurrencies. After a public comment period of about a month, the amendment is expected to take effect around this fall, according to the FSA’s announcement. CoinDeskJapan https://t.co/bhwoYSWceQ — Wu Blockchain (@WuBlockchain) July 1, 2022
The custody of digital currencies like Bitcoin (BTC) and Ether (ETH) in Japan is handled exclusively by trust companies; trust banks are no longer allowed to manage these assets. After the prefectural ordinance has been modified, each trust bank will be able to conduct its own processes, and after the control framework has been approved by the authorities, custody operations for cryptocurrency assets will be possible.
The assets of their clients’ trusts and the assets held by the trust itself can be moved between accounts in trust banks, a unique type of banking. In contrast to traditional banking operations, trust banks act as trustees.
Digital asset trends, such as those involving virtual currencies like Bitcoin, stablecoins linked to legal tender, and security tokens (ST) linked to bonds and real estate, are drastically changing everywhere, and Japan is no exception when it comes to regulatory mobility. There must be a response.
Also updated to regulate the Fund Settlement Law for stablecoins Banks, fund management firms, and trusts to Japanese Yen will be able to issue stablecoins based on the new regulations once they go into effect.
The updated Funds Settlement Law , which governs stablecoin, was passed in June. Stablecoins backed by the Japanese yen will be available for issuance by banks, fund transfer businesses, and trust firms.
Japan’s adjustment of its regulations lays the groundwork for a number of innovations. The issuance and trading of cryptocurrencies based on blockchain technologies can be done on the Mitsubishi UFJ Trus t and Banking platform. The development of Progmat and its wallet is ongoing.
Companies will be able to issue digital securities (ST) through Progmat and accept payments in stablecoins pegged to the yen of Japan. The free ticket, ticket, or membership card that comes with the stock certificate may be stored in the Progmat wallet if it is issued as a non-fungible token (NFT).