FSA targets stablecoin regulation to bolster digital assets

Japan advances stablecoin regulation and AML efforts to support digital payments.

di Ryosuke Ushida, Chief Fintech Officer at the FSA, highlighted the agency's role in balancing regulatory measures and innovation to advance Japan’s digital economy.

Ushida, referencing the stablecoin regulation implemented last June, said that it would establish a clear and comprehensive framework for both local and international players to conduct payment business in Japan.

Ushida noted, “We have a good level playing field, so any international and local players can do payment businesses in Japan.”

Beyond stablecoins, the FSA is working alongside the Bank of Japan on potential central bank digital currency (CBDC) developments, reflecting Japan’s commitment to establishing a robust digital payment infrastructure.

To further advance Japan’s digital money future, the FSA is addressing anti-money laundering (AML) challenges associated with digital assets. “Money laundering is a huge issue,” Ushida stated. “Specific types of stablecoins…are used by bad actors, and we should prevent those activities.”

The FSA is closely monitoring market developments and implementing compliance measures, such as the travel rule, to mitigate AML risks while encouraging legitimate digital asset innovations.