Japan and the UK Explore Bank-Style Safeguards for Crypto and Stablecoins — Will Other Countries Follow?

Regulators in Japan and the United Kingdom are actively developing frameworks that introduce bank-style safeguards for the cryptocurrency sector to boost user confidence, addressing the long-standing lack of guarantees equivalent to government-backed deposit insurance. In Japan, the Financial Services Agency (FSA) has proposed making user protection funds mandatory for crypto exchanges, moving beyond the current voluntary contingency reserves established by some firms. Meanwhile, the Bank of England (BoE) is considering an emergency liquidity backstop for systemically important, GBP-denominated stablecoin issuers. This BoE facility would allow the central bank to step in during a crisis to fund redemptions, ensuring users can always swap stablecoins for cash, mirroring the confidence deposit insurance provides to traditional banking. These moves aim to build trust in digital assets, which currently lack state-managed fail-safes.

(Source：CCN)