Japan's Financial Services Agency plans to propose legislation in 2022 to restrict issuance of stablecoins to banks and wire transfer companies, Nikkei reports. The liquidity crunch that China Evergrande (OTCPK:EGRNF) (OTCPK:EGRNY) is facing is also throwing some attention onto stablecoins' stability. For example, Tether (USDT-USD), the stablecoin with the biggest market cap, is backed partly by commercial paper, a form of short-term corporate debt. The company said in September that it doesn't hold any commercial paper or other debt issued by Evergrande (OTCPK:EGRNF). Still, that points to the risk that such debt could pose to stablecoin holders. Other stablecoins include USDCoin (USDC-USD) and TrueUSD (TUSD-USD). Limiting stablecoin issuance to wire transfer companies an banks, which are legally required to protect customer assets, would be a way to limit the risk for coin users, according to the FSA. The agency also intends to tighten regulations to fight money laundering by bringing
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