Japan Responds to Jerome Powell's Proposal, Urges Strict Legislation Against Stablecoins! - Kakiforex.com - Financial Market Media No. 1 in the World Japan Responds to Jerome Powell's Proposal, Urges Strict Legislation Against Stablecoins! Japan Responds to Jerome Powell's Proposal, Urges Strict Legislation Against Stablecoins!

July 16, 2021

Japan Responds to Jerome Powell's Proposal, Urges Strict Legislation Against Stablecoins!

 Stablecoins are also now the focus of Japanese supervisors when it is rumored that they will tighten laws on the asset.


This is nothing new since Japan's central bank governor criticized crypto and Binance is facing warnings for operating without a license.


In fact, the ranks of finance ministers in the G7 and G20 have previously also called for the introduction of broader legislation on stablecoins.


The decision of Federal Reserves chairman Jerome Powell yesterday seems to have succeeded in ‘influencing’ Japan’s actions against stablecoins.



According to Powell, if the asset is to be accepted in the payments sector, there needs to be strict laws on stablecoins as the United States (US) still does not have a framework for the asset.


Japan’s seriousness in monitoring the crypto market in the country can be seen with the existence of a new department set up by the Financial Services Agency (FSA). This effort is also closely linked to the establishment of the digital yen which is still under close observation and is expected to be completed by the end of 2022.


Apart from the US and Japan, China also criticized stablecoin, describing the asset as a threat to the country's financial security and social stability.


While the fintech director of the Bank of England (BOE) claims stablecoins are much safer than Bitcoin and need special consideration before reaching any conclusions.