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Hello readers,
I don’t know much about stablecoins but I do know that they’re in a bit of a sticky position right now, with US regulators taking a not-so-positive view of crypto in the wake of recent events (looking at you, Terra and FTX).
On this side of the world, however, governments are looking at putting in structures to support crypto trading and other related developments. Hong Kong, for one, announced plans last week to allow retail investors to trade tokens on licensed exchanges.
Japan is another Asian market that’s putting in place policies to make it an attractive destination for crypto. Indeed, with US dollar-backed stablecoins losing their attractiveness, Japanese yen-backed ones have the potential to be the next big thing. We go a little deeper on that prospect in today’s premium story.
Today we look at:
- How the US stablecoin clampdown could put yen-backed coins in the spotlight
- An Indonesian B2B commerce firm that’s just raised funds
- Other newsy highlights such as earnings reports from Alibaba, Seek Asia, and Grab, as well as a failed initial farm offering
Premium summary
All eyes on other stablecoins
Image credit: Timmy Loen
With Binance facing regulatory pressures regarding its BUSD unit, the conversation around stablecoins is shifting from the US to Asia. Several Asian regulators are looking to solidify their stablecoin frameworks within the year. One particularly strong candidate is Japan, and along with it, yen-based stablecoins.
- About turn: Japan’s Financial Services Agency will soon roll out new regulations that will allow certain stablecoins to be traded in the country. The government previously enacted a ban on most stablecoins in June 2022 after Terra’s collapse.
- High priority: Japanese Prime Minister Fumio Kishida is a big supporter of Web3 tech – in fact, he’s using it as part of his “Cool Japan” promotion strategy. His government also stands to benefit from yen-based stablecoins gaining traction as it translates to higher usage of the fiat currency.
- Disruptor, maybe: The global market for yen-based stablecoins is only a fraction of their US dollar-based counterparts. However, the opportunity is there: crypto exchanges in Japan saw over 3 million active users in 2021, driving almost US$500 billion worth of trades for that year.
Read more: US stablecoin clampdown may give Japan a chance to shine
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