• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Crypto.com Logo Crypto.com Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Play Games
  • BET&WIN
  • Bitcoin Casino Reviews
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Play Games
  • BET&WIN
  • Bitcoin Casino Reviews
Bitcoinist.com
No Result
View All Result
Terra LUNA
Nexo

What Terra’s Collapse Brought For Stablecoins In Japan, New Law Passed

Reynaldo Marquez by Reynaldo Marquez
2 months ago
in Crypto News
0
Advertisement

The collapse of the Terra (LUNA) ecosystem continues to ripple across the crypto industry. This cryptocurrency and its algorithmic stablecoin UST lost over 99% of its value in less than a week, leaving investors with billions in losses.

Related Reading | Elon Musk Has ‘Super Bad Feeling’ About The Economy – Terrible News For Crypto?

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

A report from Arcane Research estimates that Terra’s collapsed, now dubbed Terra Classic, resulted in over $6 billion in losses for retail investors. The report claims the ecosystem served as “perfect exit liquidity” for early LUNA, now dubbed LUNA Classic, investors.

As a consequence, many high-ranking government officials and regulators asked for stricter laws to “protect investors”. Per a report from Bloomberg, Japan is the first country to pass a bill around stablecoins.

Approved by the country’s parliament, the new bill categorized stablecoins as “digital money”. These assets must be pegged to Japan’s currency, the yen, or linked to another currency deemed legal tender by national laws.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

In addition, the Japanese parliament ruled that stablecoins must “guarantee holders the right to redeem them (stablecoins) at face value”. As the report claims, stablecoins in Japan have become assets that “can only be issued by licensed banks, registered money transfer agents and trust companies”.

In the coming months, the implementation of the bill into law will be accompanied by new regulations and rules. These will be enforced by Japan’s Financial Services Agency, as Bloomberg stated.

What is the best crypto casino in July 2022? Read our comprehensive comparison! We made deposits, played and reviewed 80+ crypto casinos to choose the best one.

Japan has strict regulations for cryptocurrencies and digital assets. The average Japanese investor can’t purchase a token available for a majority of the world, not even Tether (USDT), or USD Coin (USDC). The two most popular stablecoins.

However, the new bill could be the start of similar actions for other countries. The Terra Classic collapse seems the result of incompetence, an unsustainable model, and euphoria. The biggest winners are LUNC whales and those governments using it as an excuse to push for stricter regulations.

The Terra Fallout Spreads

Big players in Japan have plans to leverage the introduction of a new legal framework to their benefit. As the report claims, the Mitsubishi UFJ Trust and Banking Corp. has plans to issue a stablecoin.

Called Progmat Coin it could be the first stablecoin to be legally available in this country for all investors. As per the new bill, the Progmat Coin will be redeemable at face value and will allegedly be backed by the yen.

Terra Classic’s collapse might have set a precedent that could translate into more banks issuing their own digital money, and more governments asking for control. Ultimately, retail investors might be the most affected as regulators rushed to “protect them” by limiting their capacity to make decisions.

Related Reading | Bukele: If BTC Succeeds In ELSL, “It’ll Be One Of History’s Biggest Game-Changers”

At the time of writing, Bitcoin (BTC) trades at $29,400 with a 2% loss in the last 24-hours.

Bitcoin BTC BTCUSD
BTC moving sideways on the 4-hour chart. Source: BTCUSD Tradingview
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Reynaldo Marquez

Reynaldo Marquez

Related Posts

Crypto

After Zipmex, Crypto Lender Hodlnaut Files For Creditor Protection

10 hours ago
Chainalysis: Almost $2 Billion Have Gone To Crypto Hacks This Year

Chainalysis: Almost $2 Billion Have Gone To Crypto Hacks This Year

14 hours ago
FOMC, Bitcoin, crypto BTCUSD, BTCUSDT

Why The U.S. Fed Will Require Banks To Report Crypto-Related Activity

14 hours ago
Crypto.com

Crypto Exchange Crypto.com Signs Undertaking With Canada’s OSC

18 hours ago
Crypto

Crypto Exchange Zipmex Granted Three Month Creditor Protection From Singapore Court

1 day ago
EU Creates New Regulator For Crypto Oversight

EU Creates New Regulator For Crypto Oversight

2 days ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
  • Crypto Prices from Nomics
© 2022 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Play Games
  • BET&WIN
  • Bitcoin Casino Reviews

© 2021 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.