The Japanese Parliament has passed a law on stable coins, writes Bloomberg. The document recognized the cryptocurrency as digital money and indicated that it should be tied to the yen or other means of payment and guarantee holders the right to redeem it at face value.
The new law will come into force in a year. After that, only licensed banks registered money transfer operators and trust companies will be able to issue stable coins in Japan. The effect of the new rules does not apply to previously issued cryptocurrencies by foreign issuers.
The authorities of various countries began to actively discuss the regulation of stable coins after USDT, the third-largest stable coin by capitalization, depreciated in May. The cryptocurrency lost its peg to the US dollar after a one-off sale worth about $300 million.
To restore the token, the Luna Foundation Guard reserve fund sold billions of dollars worth of bitcoins and other cryptocurrencies. Also, the emission of the LUNA token, which ensured the stability of UST, was increased to 6.9 trillion.