BlockBeats News, June 1st, according to Reuters, the ruling party of Japan, the Liberal Democratic Party (LDP), blockchain promotion team has submitted a policy proposal to Finance Minister Taro Aso, advocating for the establishment of a dedicated legal framework for cryptocurrency exchange-traded funds (ETFs), while promoting the adoption and use of a yen-backed stablecoin.
The proposal points out that cryptocurrency ETFs can provide investors with a more accessible investment channel, allowing them to gain market exposure without the need to directly purchase and custody crypto assets.
In April of this year, the Japanese Cabinet approved a bill amendment draft that aims to reclassify cryptocurrency from its original designation as a payment instrument to a financial product, paving the way for future regulatory framework adjustments.
If the relevant policies are implemented, Japan will join major markets such as the United States and Hong Kong, allowing investors to participate in the cryptocurrency market through ETFs.
At the same time, the Japanese government and industry organizations are actively promoting the development of a yen-backed stablecoin. Stablecoins are usually pegged to traditional financial assets such as fiat currency, and currently, the global stablecoin market of around $315 billion is still dominated by USD-backed stablecoins. Some policymakers in non-U.S. countries are concerned that the widespread use of USD-backed stablecoins may weaken the influence of their domestic banking systems and payment systems, and are therefore exploring the development path of domestic currency stablecoins.
