Japan to Crack Down on Stablecoins

Japan to Crack Down on Stablecoins

The Financial Services Agency (FSA), the top financial regulator in Japan, is working on a legislative proposal that would only allow banks and wire transfer companies to issue stablecoins in a blow to companies like Tether, Nikkei reports.

Fiat-backed cryptocurrencies will have to be backed by reserve assets. The government agency is also focused on strengthening anti-money laundering regulations in the country.

Stablecoin issuers have also come under intense scrutiny in the U.S. Last month, the Treasury Department urged Congress to police dollar-backed cryptocurrencies like banks to ensure "adequate" protection.

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