02 July 2019 16:49, UTC

The leading financial authority in Japan said that the Facebook Libra project is likely to be approved. The Nikkei agency reports that the FSA sees no legal obstacles since it does not technically consider Libra to be a cryptocurrency.

According to the regulator, Libra "is likely not to be a cryptographic asset (virtual currency)." This is due to the fact that the token will be a sort of a stablecoin, backed by a number of different currencies, including the US dollar and the Japanese yen. Since its volatility will be low, and it will not be used for speculation or any other activity that could destabilize the national economy, Libra will not face regulatory difficulties in Japan.

Japan’s regulatory position on cryptocurrency, in general, is considered permissive, although not to the same extent as in other East Asian countries. By the end of May, the authorities adopted amendments to the current legislation on virtual currencies, requiring that the cryptocurrency exchanges in Japan apply for a license, and also impose restrictions on margin trading.

Image courtesy of Forbes

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