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Japan launches consultation on bonds eligible for stablecoin reserves

Japan launches consultation on bonds eligible for stablecoin reserves

Japan's financial regulator (FSA) has opened a public consultation on draft rules defining which bonds are eligible for stablecoin reserves.

1/27/20265 min read26 views

Context for Russia

In Russia, the regulation of crypto assets, including stablecoins, is also actively developing. In 2020, the law "On Digital Financial Assets" came into force, which established the basic rules for the circulation of cryptocurrencies. The Bank of Russia is now developing the concept of a national digital currency, which is largely similar to stablecoins.

However, unlike Japan, Russia does not yet have specific requirements for stablecoin reserves. This is an issue that will likely be addressed as part of the further development of digital asset legislation.

The essence of the news

Japan's Financial Services Agency (FSA) has opened a public consultation on draft rules that define which bonds can be included in stablecoin reserves. This is related to 2025 legislative amendments that establish new requirements for stablecoin collateralization.

According to the regulator's plan, stablecoins in Japan should be backed by highly reliable assets, such as government bonds. The consultation will last until April 17, 2023, after which the FSA plans to approve the final rules.

Expert opinion

Requirements for stablecoin reserves are an important aspect of their regulation. Securing stablecoins with reliable assets, such as government bonds, increases their stability and user trust. This is especially relevant against the backdrop of recent problems with some stablecoins that were backed by less reliable assets.

The initiative of the Japanese regulator can be a good benchmark for other countries, including Russia, in developing requirements for stablecoin reserves. Transparency and reliability of collateralization are key factors for the legalization and widespread adoption of stablecoins.

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