Japan Finance Agency proposes a comprehensive institutional reform plan for crypto assets and stablecoins

PANews reported on February 12 that according to Coinpost, Japan's Financial Department Planning and Marketing Bureau Director Yubu Shisuke today proposed a comprehensive institutional reform plan for crypto assets and stablecoins based on discussions by the Financial Review Committee last month. Among them, it is worth noting that a "domestic asset holding order" for crypto asset exchanges will be introduced, that is, a certain amount of assets are required to hold in China. This move aims to learn from the bankruptcy of the large exchange FTX in 2022 and further strengthen user asset protection. In addition, as a new institutional reform, the transaction intermediary business of crypto assets will be established as an independent business model. Under the current system, even if you only engage in intermediary business, you need to register as a crypto asset exchange, but this reform will allow business to be conducted under a more efficient regulatory framework. It is expected that gaming companies, communications companies and other companies with a broad customer base will enter this field. For example, new businesses such as NFT transactions in gaming applications and the use of crypto assets to provide payment services will be carried out.

For stablecoins, it will also promote the flexibility adjustment of trust-based supporting assets. Specifically, it is being studied to allow the use of high-security short-term Treasury bonds and fixed term deposits as backed assets. Kato Finance Minister said: "I hope to create an environment for users to use convenient remittance and payment services through institutional reform." He emphasized that the goal is to take into account user protection and promote innovation. The Department of Finance plans to concretize these reform plans in the future and formulate the "Partial Amendment Act of Trust Industry Law" and the "Partial Amendment Act of Related Fund Settlement Law".

Earlier on February 10, the Japanese Financial Services Agency planned to position crypto assets as financial commodities .