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Japan Passes Landmark Stablecoin Bill for Investor Protection: Report
The new legal framework will take effect in a year.
By Amitoj Singh
Updated May 11, 2023, 6:15 p.m. Published Jun 3, 2022, 6:34 a.m.
In a historic move, Japan's parliament passed a legal framework around stablecoins on Friday, providing a safety net for investors in the wake of last month's terraUSD collapse that resulted in multibillion-dollar losses, according to a Bloomberg report.
- Japan is one of the first major economies to pass a law specific to stablecoins even if the legislation comes into effect in a year, the report added.
- The bill provides clarity around the definition of stablecoins, which will now be considered as digital money and must be linked to the yen or another legal tender, guaranteeing holders the right to redeem them at face value.
- Stablecoins can now only be issued by licensed banks, registered money transfer agents and trust companies. The bill does not address existing asset-backed or algorithmic stablecoins. However, exchanges in Japan do not list stablecoins.
- Prepared by Japan's Financial Services Agency (FSA), the bill was planned in late 2021, accepted by the House in mid-March this year and has now been passed by a majority in the House of Councilors plenary session.
- In the wake of the terraUSD (UST) collapse, this swift action by Japan could help restore confidence in crypto.
- A stablecoin is a type of cryptocurrency whose value is tied to an outside asset, such as the U.S. dollar or gold, to stabilize the price.
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Exchange Review - March 2025
CoinDesk Data's monthly Exchange Review captures the key developments within the cryptocurrency exchange market. The report includes analyses that relate to exchange volumes, crypto derivatives trading, market segmentation by fees, fiat trading, and more.
What to know:
Trading activity softened in March as market uncertainty grew amid escalating tariff tensions between the U.S. and global trading partners. Centralized exchanges recorded their lowest combined trading volume since October, declining 6.24% to $6.79tn. This marked the third consecutive monthly decline across both market segments, with spot trading volume falling 14.1% to $1.98tn and derivatives trading slipping 2.56% to $4.81tn.
- Trading Volumes Decline for Third Consecutive Month: Combined spot and derivatives trading volume on centralized exchanges fell by 6.24% to $6.79tn in March 2025, reaching the lowest level since October. Both spot and derivatives markets recorded their third consecutive monthly decline, falling 14.1% and 2.56% to $1.98tn and $4.81tn respectively.
- Institutional Crypto Trading Volume on CME Falls 23.5%: In March, total derivatives trading volume on the CME exchange fell by 23.5% to $175bn, the lowest monthly volume since October 2024. CME's market share among derivatives exchanges dropped from 4.63% to 3.64%, suggesting declining institutional interest amid current macroeconomic conditions.
- Bybit Spot Market Share Slides in March: Spot trading volume on Bybit fell by 52.1% to $81.1bn in March, coinciding with decreased trading activity following the hack of the exchange's cold wallets in February. Bybit's spot market share dropped from 7.35% to 4.10%, its lowest since July 2023.
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