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Japan to lift the ban on foreign stablecoins

Japanese regulators are reconsidering some major cryptocurrency restrictions related to the use of stablecoins. The Financial Services Agency of Japan will lift the ban on the domestic distribution of foreign-issued stablecoins in 2023.

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Japanese regulators are reconsidering some major cryptocurrency restrictions related to the use of stablecoins. The Financial Services Agency of Japan will lift the ban on the domestic distribution of foreign-issued stablecoins in 2023.

The new stablecoin regulations in Japan will allow local exchanges to handle stablecoin trading under condition of asset preservation by deposits and an upper limit of remittance.

Allowing stablecoin distribution in Japan will also require more regulations related to Anti-Money Laundering controls, the FSA said. The authority on Monday started collecting feedback on proposals for lifting the stablecoin ban in Japan. As previously reported, Japan’s parliament passed a bill to ban stablecoin issuance by non-banking institutions in June 2022.

The latest measure will significantly impact cryptocurrency trading services offered in Japan as currently no local exchanges provide trading in stablecoins like USDT or USDC.

According to official data, none of 31 Japanese exchanges registered with the FSA including firms like BitFlyer or Coincheck  were handling trading in stablecoins as of Nov. 30, 2022.

Japanese authorities have been actively working on crypto-related regulations recently. On Dec. 15, Japan’s ruling party, the Liberal Democratic Party’s tax committee, approved a proposal removing the requirement for crypto firms to pay taxes on paper gains issued tokens.

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Coinbase wins UK FCA approval as registered crypto service provider

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Coinbase has successfully obtained registration from the UK’s Financial Conduct Authority (FCA), strengthening its position in one of the world’s key financial markets. The approval allows the crypto exchange to offer regulated digital asset services in the UK, aligning with the country’s increasing focus on compliance and consumer protection in the crypto sector. This move comes as Britain refines its regulatory framework to balance innovation with financial oversight.

With this registration, Coinbase joins a select group of FCA-approved crypto firms, ensuring it can operate under the UK’s evolving regulatory landscape. The approval signals confidence in Coinbase’s compliance measures, particularly in areas such as anti-money laundering (AML) and customer protection. The exchange has been expanding its footprint in Europe amid growing regulatory scrutiny in the U.S., positioning the UK as a strategic market for its international operations.

The UK government has been actively developing clearer rules for digital assets, with recent proposals aimed at regulating stablecoins, staking services, and crypto exchanges. By securing FCA approval, Coinbase enhances its ability to cater to UK customers while aligning with upcoming crypto regulations under the Financial Services and Markets Act. The move also reflects the UK’s ambition to establish itself as a global hub for responsible crypto innovation.

As regulatory uncertainty continues in the U.S., many crypto firms are seeking jurisdictions with clearer frameworks, and the UK has emerged as a key destination. With its FCA registration in place, Coinbase is now better positioned to expand its services, attract institutional investors, and support the country’s growing digital asset economy.

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Ethereum leads crypto’s $2.24B liquidation amid tariff wars

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The cryptocurrency market experienced a massive $2.24 billion in liquidations, triggered by heightened volatility following concerns over Donald Trump’s proposed trade tariffs. Bitcoin and major altcoins saw sharp declines as global markets reacted to the potential impact of new U.S. tariffs, leading to a cascade of leveraged position wipeouts. The sell-off highlights the growing sensitivity of digital assets to macroeconomic and political developments.

Bitcoin’s price tumbled below key support levels, triggering forced liquidations of leveraged long positions across major exchanges. Altcoins, including Ethereum and Solana, suffered even steeper losses as traders exited riskier assets. Analysts noted that high leverage ratios in crypto derivatives markets contributed to the severity of the liquidations, mirroring past volatility spikes linked to global economic uncertainty.

The proposed Trump tariffs, aimed at reshaping U.S. trade policy, have unsettled traditional financial markets, with the Nasdaq and S&P 500 also experiencing turbulence. Crypto markets, often correlated with risk assets, reacted strongly as investors reassessed positions in light of potential economic disruptions. Despite the downturn, some analysts believe Bitcoin’s long-term fundamentals remain strong, especially amid institutional adoption and upcoming supply events like the Bitcoin halving.

With traders facing billions in losses, market participants are now watching for signs of stabilization and potential recovery. The latest liquidations serve as a reminder of crypto’s high volatility and sensitivity to global events, reinforcing the need for risk management strategies in leveraged trading. As economic uncertainty persists, investors will be closely monitoring how geopolitical factors continue to shape the digital asset landscape.

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Solana stablecoins attain 2x market cap in January

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The Solana stablecoin market has surged, doubling in size as demand for USDC and other dollar-pegged assets grows. This expansion is fueled by increased DeFi activity, trading volume, and speculation surrounding Trump-themed memecoins, which have gained traction in recent weeks. With this surge, Solana solidifies its position as a major player in the stablecoin sector, rivaling Ethereum’s dominance in on-chain liquidity.

Data shows that USDC has emerged as the leading stablecoin on Solana, surpassing USDT in market share due to its perceived regulatory compliance and growing integrations with DeFi protocols. The rise in stablecoin supply highlights Solana’s increasing adoption in payments, decentralized exchanges (DEXs), and lending platforms, further strengthening its ecosystem. Analysts believe this growth could make Solana an attractive alternative to Ethereum for stablecoin-based transactions.

The recent influx of capital is also linked to the memecoin frenzy, particularly those inspired by Donald Trump’s political brand. Traders have been actively speculating on Trump-themed tokens, contributing to higher transaction volumes and liquidity inflows. While memecoins remain highly volatile, their influence on the broader crypto market—especially in ecosystems like Solana—has been increasingly evident.

As Solana’s stablecoin market expands, investors and developers are closely watching how this growth impacts network activity, fees, and scalability. If adoption continues at this pace, Solana could further cement its role as a key hub for stablecoin transactions and DeFi innovation, positioning itself as a serious contender in the blockchain space.

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