Circle VP "Web3 innovation fueled by regulation… Japan fastest in Asia" [BLS Tokyo 2025]

David Katz, Vice President of Circle, stated that innovation is accelerating as countries are actively establishing Web3 regulations. Circle is the issuer of 'USDC,' which holds the second-largest share in the global stablecoin market.

At 'BLS Tokyo 2025' held in Tokyo, Japan, on the 27th, Katz said, "The explosive growth of the Web3 ecosystem is fundamentally driven by the establishment of regulatory and asset classification frameworks," adding, "Government-defined standards are reducing market confusion and creating new opportunities."

He explained, "Just three or four years ago, there was considerable confusion as many assets were mixed under the name 'digital assets,' but now the boundaries between commodities, securities, and stablecoins have become relatively clear." He continued, "For stablecoins, 1:1 asset backing and transparent accounting standards are key," and added, "From Circle's perspective, collateral transparency and guaranteed real-time redemption are the most important values."

He further assessed that, starting with Japan, major Asian countries are swiftly updating their stablecoin legal frameworks, intensifying the 'region-wide digital currency competition.'

Katz stated, "Japan institutionalized stablecoins several years ago through amendments to the Payment Services Act, which was a major milestone for the region," and added, "South Korea, Hong Kong, and Singapore are also moving quickly to enable stablecoin issuance." He predicted, "By 2025, Asia will have entered an era of stablecoin awakening, and the readiness of each country's regulatory framework will soon intensify regional competition."

Finally, he said, "Circle hopes to see a global network where high-quality stablecoins issued by various countries can interoperate. Now, it is time to move toward a system of mutual approval and equivalence between nations," adding, "The Genius Act also contains provisions requiring the U.S. Department of the Treasury to cooperate with foreign regulators to establish mutual approval systems," and predicted, "Such developments will soon lead to an efficient and integrated global digital asset market."

Tokyo = Dohyun Hwang, Bloomingbit Reporter cow5361@bloomingbit.io