Stablecoins have been making headlines a lot this year, and they continue to be exposed into the spotlight. Check out the latest reports about the stablecoins in Japan.
Stablecoin bill in Japan
In a historic move, Japan’s parliament passed a legal framework around stablecoins on Friday. This provides a safety net for investors in the wake of last month’s TerraUSD collapse that resulted in multi-billion losses, according to a Bloomberg report.
As the important online publication CoinDesk notes, Japan is one of the first major economies to pass a law specific to stablecoins even if the legislation comes into effect in a year, the report added.
This bill provides “clarity around the definition of stablecoins which will now be considered as digital money and must be linked to the yen or another legal tender, guaranteeing holders the right to redeem them at face value.”
According to important data, stablecoins can now only be issued by licensed banks, registered money transfer agents and trust companies.
“The bill does not address existing asset-backed or algorithmic stablecoins. However, exchanges in Japan do not list stablecoins,” official notes say.
The official notes continued and revealed the following as per CoinDesk:
“Prepared by Japan’s Financial Services Agency (FSA), the bill was planned in late 2021, accepted by the House in mid-March this year and has now been passed by a majority in the House of Councilors plenary session.”
Bitcoin mining banning bill
Accoridng to the latest reports, following an early morning vote in Albany on Friday, lawmakers in New York passed a bill to ban certain BTC mining operations that run on carbon-based power sources.
This measure is now heading to the desk of Governor Kathy Hochul, who could sign it into law or veto it.
According to new data coming from CNBC, if Hochul signs the bill, it would make New York the first state in the country to ban blockchain technology infrastructure.