You can see the rules and regulations in other jurisdictions.
To protect consumers and establish a safe and sound settlement system, the PSA regulates prepaid payment issuers. The local finance bureau that has jurisdiction over the issuer must register issuers that distribute prepaid payment instruments for paying for goods or services offered by the issuers and third-party merchants ('third-party type' prepaid payment instruments).1
The issuer must notify the local finance bureau if the unused balance of the prepaid payment instruments exceeds $10 million on a reference date (both 31 March and 30 September) when the prepaid payment instruments are used only to pay the issuer ('own business type' prepaid payment instruments).1
Moreover, all issuers of prepaid payment instruments are required to reserve at least 50% of the total amount if the unused balance exceeds $10 million at either reference date. Except in certain circumstances, the issuer may not redeem or buy back such instruments.1
Prepaid payment instruments must have the following three elements: a record of value; issuance in exchange for consideration; and use as a payment. If the instrument satisfies certain exception criteria, such as having a usage period of less than six months, then it will not qualify as a prepaid payment instrument and will not be subject to the PSA.1
This report seeks to develop a new regulatory framework for remittance and settlement services that separates issuers from intermediaries as a result of the rapid growth in transactions using stablecoins in the US and other countries, which aim to link their value to legal tender. As described in the report, an 'electronic means of payment' is one that can be used for remittance and settlement to unspecified parties and can be recorded electronically and transferred electronically; this includes stablecoins. The report assumes issuers as conventional banks and fund transfer service providers. As for intermediaries, the report suggests a regulatory framework similar to cryptoasset exchanges: they will be required to provide information about the electronic means of payment that they handle, respond appropriately to AML/CFT, develop an appropriate system for these measures, and implement appropriate measures for user protection, such as the management of user assets and the provision of information. Further, intermediaries will not be required to handle electronic payment methods that may pose security concerns.1
