The Financial Services Agency of Japan does not consider steablcoins as virtual currencies regulated by the country's current regulations for cryptoindustry. This is reported by Bitcoin.com.
According to representatives of the ministry, according to the legislation adopted last April, the definition of “virtual currencies” includes cryptoassets used as a means of payment. The latter are not subject to consumption tax. Also crypto exchange operators need to register with the Financial Services Agency.
In principle, stable coins pegged by legal currencies do not fall into the category of ‘virtual currencies’ based on the Payment Services Act. Generally speaking, companies need to register as the ‘Issuer of Prepaid Payment Instruments’ or the ‘Funds Transfer Service Providers’ based on Payment Services Act, when virtual currency broker dealers trade stable coins.
Financial Services Agency
Earlier, Japanese IT giant GMO Internet announced the launch of a stablebcoin tied to the Japanese yen in 2019.