The Japanese government has signed off on proposals to reform laws governing crypto brokerages and stablecoins.
Per a release from Japan’s top regulator, the Financial Services Agency (FSA), and a news report from the Japanese media outlet CoinPost, the government has approved a Cabinet decision to amend the Payment Services Act.
In its history, the Japanese parliament has never voted against any crypto-related legal change approved by the Cabinet. And the Cabinet, in turn, has never rejected a legal change proposed by the FSA, which has something of a carte blanche when it comes to Japanese crypto regulatory matters.
Tokyo has sent a bill to finalize the amendments to the National Diet. The Diet is all but certain to vote in favor of the amendments in the coming days.
Currently, Japanese firms need to match the amount of tokens they have in circulation 1:1 with cash deposits in regulated bank accounts.
The bill also allows stablecoin issuers to enjoy more flexibility when it comes to the type of assets they can use to back their coins.
The bill will allow crypto companies to operate as “intermediary businesses.” That means that brokers will no longer need to apply for the same kind of permits that crypto exchanges and crypto wallet operators use.
To qualify for these new licensees, brokerages will have to prove that they do not directly handle any of their clients’ funds.
Crypto brokerages, meanwhile, will not be subject to financial requirements or anti-money laundering regulations under the terms of the bill. This, CoinPost wrote, will “lower the barrier to entry.”
These include Mercari, SBI Securities, and Monex Securities. All three of these firms also operate successful domestic crypto exchanges.
Media reports claim that some of Japan’s biggest (and most crypto-keen) businesses are already eyeing brokerage operations.