The Japanese government approves the reform bill for cryptocurrency brokers and stablecoins

The Japanese government has approved a proposal to amend the "Payment Services Act", aimed at reforming the regulatory framework for cryptocurrency brokers and stablecoins. The bill has been submitted to Congress for review and is expected to be passed soon.

According to information released by the Financial Services Agency (FSA), the new rules will allow crypto companies to operate as "intermediary businesses", meaning that brokers no longer need to apply for the same licenses as cryptocurrency exchanges and wallet operators.

The bill also provides greater asset backing flexibility for stablecoin issuers, allowing them to use specific Japanese and US government bonds as endorsement assets for stablecoins, rather than the currently required 1:1 cash deposit.

However, only specific bonds with a remaining term of three months or less are eligible, and bond support ratios must not exceed 50%, with the remainder still held in current accounts.

For crypto brokers, new regulations will not require them to meet financial requirements or anti-money laundering regulations, significantly lowering market entry thresholds. Brokers only need to prove that they do not directly handle customer funds in order to obtain a new license. Reportedly, large Japanese corporations including Mercari, SBI Securities and Monex Securities have expressed interest in brokerage business.