Financial regulators in Japan are reportedly planning to seek limits on who can issue stablecoins in the country.
According to Nikkei, citing sources familiar with the matter, the Financial Services Agency wants to withhold such activities for banks and wire services. The agency is said to be planning to propose legislation to affect this change sometime next year.
If so, it would constitute an aggressive form of stablecoin regulation, coming as governments around the world move forward with varying approaches to regulating this particular corner of the crypto space. Broadly, stablecoins are cryptocurrencies pegged or linked in some way to government-issued currencies like the U.S. dollar.
Per Nikkei, companies that interact with stablecoins, including wallet-makers, may also be subject to FSA oversight. “They will also be required to meet obligations under Japan’s law on preventing transfers of criminal proceeds, including verifying user identities and reporting suspicious transactions,” Nikkei’s report continued.