Editor's PiCK
Government Reviewing Regulations on Stablecoin Foreign Exchange Transactions…"Possibility of Application of the Foreign Exchange Transactions Act"
Summary
- The government announced that it is considering regarding stablecoins such as Tether (USDT) as foreign currencies like the U.S. dollar or Japanese yen.
- The Ministry of Economy and Finance stated that it has commissioned research on the application of the Foreign Exchange Transactions Act to stablecoins and potential system improvements.
- According to the industry, there is a possibility that control measures at the level of foreign exchange transaction regulations could be introduced for stablecoins.
The government has launched a study to determine whether stablecoins such as Tether (USDT) should be regarded as foreign currencies, similar to the U.S. dollar or Japanese yen, and whether the Foreign Exchange Transactions Act should apply.
According to the industry on the 28th, the Ministry of Economy and Finance recently commissioned research to examine the possible application of the Foreign Exchange Transactions Act to stablecoins, as well as potential improvements to the system. This is interpreted as a proactive measure in light of expectations that the United States, through the Genius Act, may make direct use of stablecoins in payment and trade.
There are also predictions in the industry that stablecoins may become subject to control measures similar to those of conventional foreign exchange transaction regulations.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
