Japan passes stablecoin bill ensuring redemption at face value, Bloomberg says

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Japan passes stablecoin bill ensuring redemption at face value, Bloomberg says
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Governments are looking to protect stablecoin investors after TerraUSD’s implosion led to multibillion-dollar losses from an asset that had been touted as safe.

for stablecoin investors after TerraUSD’s implosion led to multibillion-dollar losses from an asset that had been touted as safe, the report said.

The legal framework for stablecoins will take effect in a year, Bloomberg said. Japan’s Financial Services Agency will devise regulations for stablecoin issuers in the coming months. Japan’s parliament clarified the legal status of stablecoins as essentially digital money, meaning they can be issued only by licensed banks, registered money transfer agents and trust companies, the report said.

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