{"id":522680,"date":"2022-12-07T13:45:00","date_gmt":"2022-12-07T10:45:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/japan-recommends-against-algorithmic-backing-in-stablecoins\/"},"modified":"2022-12-07T13:45:00","modified_gmt":"2022-12-07T10:45:00","slug":"japan-recommends-against-algorithmic-backing-in-stablecoins","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/japan-recommends-against-algorithmic-backing-in-stablecoins\/","title":{"rendered":"# Japan recommends against algorithmic backing in stablecoins"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a20ec9ead9a0\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a20ec9ead9a0\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/japan-recommends-against-algorithmic-backing-in-stablecoins\/#%E2%80%9D_Japan_recommends_against_algorithmic_backing_in_stablecoins_%E2%80%9C\" >&#8221; Japan recommends against algorithmic backing in stablecoins &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Japan_recommends_against_algorithmic_backing_in_stablecoins_%E2%80%9C\"><\/span>&#8221; Japan recommends against algorithmic backing in stablecoins &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTIvZjAwYjI3NTItNDg0Zi00NTQyLWJhNTUtZmI0ZTllNGMwZTI3LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-0aad2d21>After passing its landmark legislation on stablecoins in June, Japanese regulators are considering complementing it by restricting the algorithmic backing of stablecoins. The intention comes as a recommendation from the Financial Service Agency (FSA) and was repeated by the country\u2019s Vice Minister for International Affairs, Tomoko Amaya.\u00a0<\/p>\n<p>During his speech on crypto assets at a roundtable hosted by the Official Monetary and Financial Institutions Forum (OMFIF), Amaya laid out Japan\u2019s regulatory framework, emphasizing the factors of financial stability, user protection, and anti-money laundering\/ combating the financing of terrorism (AML\/CFT). The speech was originally held in November, but the FSA published the full <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.fsa.go.jp\/en\/news\/2022\/20221207\/01.pdf\">document<\/a> on Dec 7. <\/p>\n<p>The 29-paged presentation systemizes the Japanese <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roach to crypto regulation, formed by several major legislations \u2014 the Banking Act, the Payment Services Act and the Financial Instruments and Exchange Act. One familiar with the Japanese regulatory environment couldn\u2019t find anything new at this point, although the accent on differentiating between the \u201ccrypto assets\u201d and \u201cdigital-money type stablecoins\u201d gives a distinct perspective on the local regulators\u2019 approach to the latter. <\/p>\n<p><strong><em><u>Related: <\/u><\/em><\/strong><strong><em>Bank of Japan to trial digital yen with three megabanks<\/em><\/strong><\/p>\n<p>Amaya\u2019s speech also doesn\u2019t specify any particular dates or headlines for future legislation. However, at the end of the document, in the \u201cWay Forward\u201d section, the Vice Minister cites the FSA recommendations, reportedly made in October. As the quote goes:<\/p>\n<blockquote><p>\u201cThe proposed review states that \u2018global stablecoins must not use algorithms in stabilizing their value\u2019 and strengthens the ensuring of redemption rights.\u201d\u00a0<\/p><\/blockquote>\n<p>This recommendation would probably be taken into consideration by lawmakers in the future, as the current stablecoins\u2019 regulation, which was passed by Parliament in June and will become law in June 2023, doesn\u2019t cover algorithmic stablecoins. The bill itself came in the aftermath of a massive decline in cryptocurrency markets fueled by the Terra tokens collapse, with the algorithmic stablecoin Terra USD (UST) losing its 1:1 value to the U.S. dollar in early May.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/japan-recommends-against-algorithmic-backing-in-stablecoins\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Japan recommends against algorithmic backing in stablecoins &#8220; After passing its landmark legislation on stablecoins in June, Japanese regulators are considering complementing it by restricting the algorithmic backing of stablecoins. The intention comes as a recommendation from the Financial Service Agency (FSA) and was repeated by the country\u2019s Vice Minister for International Affairs, Tomoko&#8230;<\/p>\n","protected":false},"author":1,"featured_media":522681,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTIvZjAwYjI3NTItNDg0Zi00NTQyLWJhNTUtZmI0ZTllNGMwZTI3LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[88156,75493,122378,20618,70934],"class_list":["post-522680","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-fsa","tag-stablecoin","tag-terra","tag-japan","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/522680","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=522680"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/522680\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/522681"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=522680"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=522680"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=522680"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}