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How might Japan’s lifting of the Stablecoin ban affect the cryptocurrency world?

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After the fall of Terra/Luna in May 2022, authorities began to scrutinize stablecoins more. As a result, many countries have come to the conclusion that restrictions should be placed on stablecoins backed by the US dollar, such as Rope (USDT) and the USD currency (USDC).

However, things are getting better now. Japan plans to lift its ban on domestic distribution of dollar-backed stablecoins issued abroad. The Financial Services Agency (FSA) made this decision after reviewing ordinances that were passed by the Cabinet Office. Read ahead to find out how the lifting of the ban on stablecoins will affect the crypto world.

Japan is on its way to lifting the Stablecoin ban

Japan’s Financial Services Agency (FSA) officially announced on December 26, 2022 that it will come up with a draft system and guidelines for trading stablecoins pegged to currencies such as the US dollar. Distributors will be authorized to manage the stablecoins being issued abroad as long as they hold sufficient assets.

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When the amended Payment Services Act comes into effect in 2023, it will apply along with the Guidelines. The aim of the Guidelines is to ensure that distributors and cases create a secure transaction environment. The financial regulator stated that local distributors will oversee the distribution of stablecoins being issued abroad.

A transaction limit of 1 million yen and $7,500 per transaction will be applied to transfers made possible by these stablecoins, and adequate reserves will be guaranteed. Distributors will be required to provide the financial regulator with certain information as part of the anti-money laundering mechanism. This requires them to disclose the names of persons associated with the transactions.

As far as stablecoins issued in Japan are concerned, issuers will be required to hold collateral assets for them. The only issuers are banks, organizations providing money transfer services, and credit institutions. It is important to note that Japan has already passed legislation to create the regulatory framework for stablecoins in June 2022.

Implications of lifting the ban on stablecoins by Japan

There is no doubt that the financial regulator’s decision to lift the ban on stablecoins issued by foreign entities is a major step towards the development of the cryptocurrency market in Japan. With this decision, local crypto enthusiasts will now have access to a wide range of stablecoins, such as Tether and USDC. Since cryptocurrency traders now have access to a growing range of assets, competition in this sector is likely to increase soon. This increased competition may be beneficial to consumers in the long run because it will lead to lower fees.

This approach by the Japanese government in lifting the aforementioned restrictions on stablecoins is positive news that cryptocurrency enthusiasts need. It hints that governments are starting to regulate Digital currencies rather than a blanket ban on these digital assets. This balanced approach will lead to a healthy growth of the cryptocurrency industry in the long term because it will encourage other countries to come up with some guidelines or rules to regulate cryptocurrencies instead of directly restricting their use.

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conclusion

This development is a reflection of the country’s welcoming attitude towards cryptocurrency regulation. Recently, the Tax Committee of the Liberal Democratic Party, the ruling party in Japan, approved a proposal to exempt crypto businesses from taxes on paper earnings issued. The country also plans to launch its own central bank digital currency.

The pilot study of issuing the digital yen is expected to start in the spring of 2023. Regulators are also entering into long-term cooperation agreements with cryptocurrency miners. Lifting the ban on stablecoins is expected to be just the first step by the Japanese government, and several reforms are expected to follow in the coming year.

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BNT/USD is trading near the $0.50 resistance

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The Bancor price prediction shows that BNT is crossing the 9-day and 21-day moving averages while the coin is taking off to the upside.

Bancor Prediction Statistics Data:

  • Bancor price now – $0.34
  • Bancor’s market capitalization is $55.8 million
  • The circulating supply of Bancor – 162.5 million
  • The total supply of Bancor – 162.5 million
  • Bancor Coinmarketcap Ranking – #287

BNT/USD market

Key levels:

Resistance levels: $300, $310, $320

Support levels: $130, $120, $110

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BNTUSD – daily chart

BNT / USD It is currently trading at $0.345 after touching a daily high of $0.490, and is likely to return above the 9-day and 21-day moving averages. However, in case the buyers can push the price above the $0.50 resistance level, then the daily candlestick may close above this level, and the price may rise towards the upper boundary of the channel.

Bancor Price Prediction: Bancor is preparing for an upward movement

According to the daily chart, the Bancor price It is moving near the $0.40 resistance level as the coin is preparing for additional gains. The technical indicator’s RSI (14) is also moving to cross above the 50 level, where the signal line is pointing up to signal a buy signal.

However, if buyers are able to push the price and hold it above the 9-day and 21-day moving averages, Bancor price could rise towards the upper boundary of the channel to reach the potential resistance levels at $0.50, $0.55, and $0.60. While crossing below the lower border of the channel, it could lift the currency to the support levels at $0.25, $0.20, and $0.15, respectively.

Against Bitcoin, Bancor is following a bullish rally, and it could swing higher to cross above the upper boundary of the channel that could identify the resistance at 2400 SAT and above. On the other hand, if the market price crosses the lower boundary of the channel, it may reach the support level of 1800 SAT and below.

BNTBTC – Daily Chart

However, the technical indicator’s RSI (14) is currently moving to cross above the 50 level as the signal line is pointing north to confirm the upward move. Moreover, any further upward movement may create additional gains above the channel.

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DYDX/USD could rise above $1.20

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Since the coin starts the upward movement towards the upside, the dYdX price forecast is likely to move steadily inside the channel.

dYdX prediction stats data:

  • DYDX price now – $1.10
  • DYDX market capitalization – $72.7 million
  • Circulating supply of DYDX – 65.5 million
  • Total supply of DYDX – 1 billion
  • DYDX Coinmarketcap Rank – #198

DYDX/USD Market

Key levels:

Resistance levels: $2.00, $2.20, $2.40

Support levels: $0.50, $0.30, $0.10

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DYDXUSD – daily chart

DYDX/USD is likely to cross above the 9-day and 21-day moving averages as the currency begins its upward movement. in the past few days, dYdX price Struggles to cross over to the positive side. According to the daily chart, the RSI (14) technical indicator moved to cross above the 40 level, confirming the bullish movement of the currency.

dYdX Price Prediction: DYDX is ready for an uptrend

the dYdX price It is currently moving north. If the currency continues its upward movement, the bulls may cross above the 9-day and 21-day moving averages, which could reach the resistance levels at $2.00, $2.20, and $2.40. At the time of writing, DYDX/USD is showing a slight bullish movement on the daily chart.

Conversely, if the coin slips below the lower boundary of the channel, it may bring the coin back to the $0.50, $0.30, and $0.10 support levels, respectively. Meanwhile, long-term buyers should not be alarmed by the small impact down the road, as the future of DYDX is assured as evidenced by the technical indicator’s RSI (14).

Against Bitcoin, dYdX price is hovering below its 9-day and 21-day moving averages as the coin is poised for an upward move. The technical indicator’s RSI (14) also confirms the upward movement as the signal line encounters the 40 level. On the contrary, a potential downside move could emerge if the market price crosses below the lower boundary of the channel, which could reach the support level 200 SAT and below.

DYDXBTC – Daily Chart

Meanwhile, any further bullish move above the moving averages could push the coin to the 1200 SAT resistance level and above, and this could take the coin to a new high, and the market could remain in the bullish zone.

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SBF to Enter Plea Deal, Mango Exploiter Arrested, Celsius News: Hodler’s Digest, Dec. 25-31

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