Table of Contents:

· Binance and Circle both plan to enter the Japanese stablecoin market

· New regulations for Japanese stablecoins were introduced on June 1st of this year

BlockBeats News, September 25th, Mitsubishi UFJ Trust Bank has reached a cooperation agreement with Binance Japan to jointly research and issue new stablecoins based on the stablecoin issuance and management infrastructure "Progmat Coin" that complies with Japanese regulations. The planned stablecoins include yen stablecoins and dollar stablecoins.

Binance and Circle both plan to enter the Japanese stablecoin market

On September 1st, Binance Japan released its first tweet saying "Hello!" which was then retweeted by the official Binance account. Binance Japan officially launched in the Japanese market on August 1st, offering services such as spot trading, financial products, and the Binance NFT platform.

Binance acquired licensed Japanese cryptocurrency trading service provider Sakura Exchange BitCoin (SEBC) in November last year and entered the Japanese market. SEBC has since changed its name to Binance Japan Inc. Existing Japanese users with Binance accounts began the migration process on August 14th.

BlockBeats News, August 30th, Binance Japan representative Tsuyoshi Chino announced the development strategy of Binance in the Japanese market at a business sharing meeting. These goals include using stablecoin securities token offerings (STOs) in the payment field, and obtaining merchants for the payment platform Binance Pay.

Qian Ye Gangsi pays special attention to the business opportunities of JPY stablecoins. In addition to relaxed regulations, he mentioned that JPY-based stablecoins can not only meet the needs of virtual currencies, but also be used for trade transactions, security tokens, and programmable payments, among other use cases.

Other than Binance targeting the stablecoin market in Japan, another stablecoin giant, Circle, has also taken notice of the change in the Japanese government's attitude towards stablecoins.

BlockBeats previously reported that on July 6th, Jeremy Allaire, co-founder and CEO of stablecoin issuer Circle, stated that Circle is considering issuing stablecoins in Japan. "If stablecoins are more widely used in cross-border trade, foreign trade, and global business, Japan will become an extremely large market, and Circle is interested in establishing partnerships in Japan."

Related Reading: "Circle Considers Issuing Stablecoin in Japan Under New Rules"

However, from the current perspective, Binance is ahead of Circle and has obtained a ticket to enter the Japanese stablecoin market.

Japan's stablecoin regulations were introduced on June 1st this year

Last December, the Japanese Financial Services Agency announced that it will lift the ban on the circulation of stablecoins issued overseas in Japan by 2023. After formulating relevant guidelines, it will be implemented in conjunction with the latest "Fund Settlement Law" to be implemented in 2023. For stablecoins issued domestically in Japan, issuers are required to prepare support assets as collateral, and issuers are limited to banks, registered transfer agents, trust companies, etc. In addition, for stablecoins issued overseas that are planned to be deregulated, the proposed remittance limit is set at 1 million yen per transaction.

BlockBeats reported in March this year that three Japanese banks, Tokyo Kiraboshi Financial Group, Minna no Bank, and The Shikoku Bank, will test stablecoins on the Ethereum-compatible blockchain "Japan Open Chain". The initial focus of the test will be on the issuance and remittance of digital currencies, with future plans to focus on stablecoin systems that meet legal requirements.

On June 1st, according to the Japanese cryptocurrency media Coinpost, the revised "Payment Services Act" in Japan came into effect, allowing the issuance of domestic stablecoins and benefiting multinational companies.

Related reading: "Possible benefits for multinational companies with the issuance of domestic stablecoins under the revised Payment Services Act effective June 1"

According to the revised Payment Services Act, the issuer of stablecoins issued in Japan is responsible for preparing the supporting asset reserves, and the issuer will be limited to banks, fund transfer companies, trust companies, etc. For stablecoins issued overseas, the preservation of assets will be the responsibility of the issuer rather than the issuer. In addition, from the perspective of preventing money laundering, dealers will be required to record transaction information.

The next day, Mitsubishi UFJ Financial Group (MUFG), Japan's largest bank, announced the development of its stablecoin platform "Progmat Coin" to facilitate the issuance and trading of stablecoins issued and supported by the Bank of Japan.

Japan's official side has already set up the stage, waiting for all parties to take the stage.

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