The Japanese government is currently reviewing key cryptocurrency regulations related to the use of stablecoins such as tether USDT/USD and USD coin USDC/USDsuch a report.

Japan’s Financial Services Authority will lift its ban on domestic circulation of overseas-issued stablecoins in 2023, allowing local exchanges to conduct stablecoin trading on deposit-preservation terms and a maximum remittance limit, according to local news agency Nikkei reported.

“As payment with stablecoins spreads, international remittances may become faster and cheaper,” the report states.

The FSA has stated that more anti-money laundering legislation will be needed to allow stablecoins to be distributed in Japan.

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On Monday, authorities began collecting feedback on ideas for easing lockdown Stablecoin restriction in Japanwhich was passed by the Japanese Parliament in June 2022.

The new legislation will have a significant impact on cryptocurrency trading services in Japan, as none of the 31 registered exchanges, including BitFlyer and Coincheck, were handling stablecoin trading as of November 30.

In the past, the Japanese government has actively worked to develop cryptocurrency-related laws, including a proposal by the ruling Liberal Democratic Party’s tax committee to exempt cryptocurrency companies from paying taxes on tokens issued for paper profits.

Local authorities have also advised against its use algorithmic stablecoins like Terra USD USTC/USD.

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