Bitcoin Today: Japan - stablecoins are not cryptocurrencies
Price
The week opened a common pattern of low volatility and gradual lowering… Nothing changed a lot in the fundamental background, so without catalysts, the slow low-demand trading continues. October futures has expired on 26.10, this could have been pressuring on the price, so there are opinions that this week (the week after closure) could bring some movement on the market. For now, BTCUSD is trading at the lowest levels of correctional channel 6450 – 6500, a breakthrough below these levels could send the price to the support zone 5750 – 6250. 6800 and 100-days EMA are the main resistance levels now.
Today forecast
Today most probable trading diapason: 6450 - 6800. In case of crossing the 6450 - high downward risk.
Latest news
The week opened a common pattern of low volatility and gradual lowering… Nothing changed a lot in the fundamental background, so without catalysts, the slow low-demand trading continues. October futures has expired on 26.10, this could have been pressuring on the price, so there are opinions that this week (the week after closure) could bring some movement on the market. For now, BTCUSD is trading at the lowest levels of correctional channel 6450 – 6500, a breakthrough below these levels could send the price to the support zone 5750 – 6250. 6800 and 100-days EMA are the main resistance levels now.
Today forecast
Today most probable trading diapason: 6450 - 6800. In case of crossing the 6450 - high downward risk.
Latest news
- Japanese Regulator on stablecoins and why they are not cryptocurrencies
The Financial Services Agency of Japan (FSA) explained to Bitcoin.com how the current legislation of the country relates to stablecoins. The bottom line is that they are not considered as virtual currencies. Moreover, their issuers and dealers must go through the registration procedure.
“In principle, stable coins pegged by legal currencies do not fall into the category of ‘virtual currencies’ based on the Payment Services Act.”
Cryptocurrencies in Japan are governed by the laws "Fund Settlement Law" and "Payment Services Act", active since April last year. The first of these contains the definition of virtual currencies as a means of payment and exempts them from consumer tax. The second requires that cryptocurrency exchange operators register with the Financial Services Agency (FSA).
On October 9, the Japanese company GMO announced that it would “begin full-scale preparations for the release of virtual stablecoins.” GMO Coin manages one of Japan’s 16 crypto exchanges.
“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.” - The FSA also explained to Bitcoin.com that "sometimes the complicity of stablecoins are such that it is not always advisable to offer them registration before they are released.
In accordance with the position of the FSA, there are two types of prepaid payment instruments: for your own business and for third-party companies. For each of them, there are separate requirements for reporting and registration.
As for providers of money transfer services in general, the Bank of Japan states: “under the Payment Services Act, those registered as fund transfer service providers may perform fund transfer transactions of up to one million yen [$9,000]” without a banking license. “In other words, fund transfer transactions of over one million yen are still handled exclusively by banks, “. FSA elaborated, noting:
“When a person/an entity engages in exchange transactions of one million yen equivalent or less in the course of trade, registration as a funds transfer service provider is required. For exchange transactions exceeding one million yen, a license for banking business pursuant to the ‘Banking Act’ is required.”
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