Japan may restrict algorithmic stablecoins

ChainCatcher News, a document released by the Japanese Financial Services Agency indicates that the country's regulators may restrict algorithmic stablecoins.

In November of this year, Tomoko Amaya, Deputy Minister for International Affairs at the Japanese Financial Services Agency, delivered a speech at a roundtable hosted by OMFIF, which has been made public today. Amaya pointed out in her speech, "The proposed assessment suggests that stablecoins should not use algorithms to stabilize their value and strengthens the protection of redemption rights." This may hint at the regulatory direction for stablecoins moving forward.

Previously, the Japanese parliament passed stablecoin regulations in June of this year, which do not include algorithmic stablecoins. The regulations will take effect in June 2023. (cointelegraph