Circle to Issue Stablecoin in Japan Under New Regulations
• Circle CEO Jeremy Allaire expressed interest in issuing a stablecoin in Japan following the introduction of new regulatory rules.
• The new regulations certify stablecoins backed by legal tender as an “electronic payment method”, and allow their issuance under strict conditions.
• Circle is exploring partnerships in Japan to leverage the country’s favorable stance towards digital currencies and blockchain technology.
Finance Circle Considers Issuing Stablecoin in Japan
Circle CEO Jeremy Allaire expressed interest in issuing a stablecoin in Japan, given that new rules governing stablecoins have come into effect on June 1.
New Rules For Stablecoins In Japan
The legislation makes it possible for overseas stablecoins to be certified as an “electronic payment method”, with holders guaranteed the right to redeem them at face value. Only licensed financial institutions like licensed banks, registered money transfer agents and trust companies will be able to issue stablecoins.
Circle Exploring Partnerships In Japan
Given Japan’s favorable stance towards digital currencies and blockchain technology, Circle is interested in exploring partnerships there. Allaire visited the country last month to discuss potential opportunities for collaboration.
Circle recently obtained a Major Payment Institution (MPI) license from Singapore which allows it to offer digital payments token services across borders.
Given all these developments, it appears that Circle is planning to capitalize on the Japanese market and launch its own stablecoin there soon.