PANews reported on February 19 that according to CoinDesk Japan, the Japanese Financial Services Agency formally approved the report of the "Fund Settlement System, etc." Working Group at the Financial Council General Meeting today. The report was discussed at 7 meetings and aims to strengthen the regulatory framework for crypto assets and stablecoins.
The main contents include:
• Strengthen user protection in the event of exchange bankruptcy: Drawing on the Financial Instruments Exchange Act, relevant regulations will be incorporated into the Funds Settlement Act to address the risk of the FTX bankruptcy incident in 2022.
• Establishing a crypto asset brokerage industry: Introducing the “affiliation system”, allowing brokers to operate in conjunction with specific exchanges without having to hold customer assets, but not subject to AML/CFT (anti-money laundering/counter-terrorist financing) regulations.
• Adjust stablecoin reserve assets: In addition to demand deposits, it is allowed to hold them in short-term government bonds and time deposits, but the upper limit is 50%.
The current regulatory framework has been submitted to Financial Services Minister Katsunobu Kato, and the legalization process will be promoted in the future.
