Japanese Regulator Recommends to Limit Algostablecoins
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According to the vice minister for foreign affairs of Japan, Tomoko Amaya, the Japan Financial Services Agency (FSA) has just recommended restricting the use of algorithmic stablecoins in the country.
According to him, the recommendations apply to assets that could become “global stablecoins.” According to the FSA, the latter should not use algorithms to maintain the course.
The agency says that “stablecoins” are at risk of a banking panic. To address it, regulators need to “take policy action to ensure redemption at par and price stability.”
He has also stressed the importance of oversight of custodial service providers.
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