Japan's Financial Services Agency announces that "stablecoins do not fall under virtual currency"! Will qualifications be required in the future!?
Stablecoins do not fall under cryptocurrencies, official announcement by the Financial Services Agency (FSA)!
The major cryptocurrency media Bitcoin.com conducted an exclusive interview with the Japanese Financial Services Agency, and revealed that the FSA recognizes that “stablecoins do not fall under the category of cryptocurrencies.”
In principle, a stablecoin pegged to fiat currency is not classified as a “cryptocurrency” under the Payment Services Act.
Citation: Bitcoin.com「Japanese regulators: Stablecoins are not cryptocurrencies under current law」
Why are they not cryptocurrencies? What are stablecoins?
Stablecoinis a currency designed to stabilize its price by pegging to fiat currency or another cryptocurrency.
For more details on stablecoins, please see below.
>>>What are stablecoins? A thorough explanation of mechanisms and types!
And stablecoins can be broadly categorized into the following three types.
- Fiat-collateralized
- Crypto-collateralized
- Uncollateralized
Japan’s FSA states that among the three types ofstablecoins, thefiat-collateralized stablecoins do not count as cryptocurrencies.
In principle, a stable currency fixed to fiat currency is not categorized as a “cryptocurrency” under the amended funds settlement act.
Citation: Bitcoin.com「Japanese regulators: Stablecoins are not cryptocurrencies under current law」
In other words, stablecoins issued by Gemini, the cryptocurrency exchange run by the Winklevoss twins, such as theGemini Dollar, and the “GMO Japanese YEN” announced by the GMO Group for 2019 are legally not considered “cryptocurrencies.”
>>>Gemini (Winklevoss twins) issues stablecoin Gemini Dollar!!!
>>>GMO announced the 2019 release of a Japanese yen pegged stablecoin, GMO Japanese YEN
Qualifications to issue stablecoins
Next..............More details here ⇩
>>>View on the Official Cryptocurrency Trivia site
