Odaily News - Jeremy Allaire, Co-founder and CEO of Circle, stated that considering the legislation in Japan regarding stablecoins becoming effective on June 1st, Circle is contemplating issuing stablecoins in the country. He believes that if stablecoins can be more widely applied in cross-border trade, foreign currency exchanges, and global commerce, Japan will become an extremely massive market.



The stablecoin legislation in Japan makes it one of the first countries to establish a framework for the use of stablecoins overseas. Allaire believes that this is the "most significant thing" done by the government and the financial services agency. He also mentioned that Circle intends to establish partnerships in Japan and visited the country last month.



According to reports, the revised Payment Services Act in Japan recognizes stablecoins backed by fiat currency as "electronic payment methods" and allows their issuance. Stablecoin issuers are required to adhere to strict rules. The stablecoin must be pegged to the Japanese yen or other fiat currencies and guarantee the right for holders to redeem at face value. Only licensed financial institutions such as banks, registered remittance agents, and trust companies are permitted to issue stablecoins. In December last year, the country's Financial Services Agency lifted the ban on overseas stablecoins. (CoinDesk)