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Japanese lawmakers pass stablecoin bill to safeguard crypto investors

Japanese lawmakers on Firday passed a bill for stablecoins to protect crypto investors. The bill comes a month after the TerraUSD (UST) stablecoin crash that caused investors to lose billions of dollars as the stablecoin lost its value.

TerraUSD crash made a majority of countries think of an alternative way of legalizing cryptos. Japan being one of the biggest countries in terms of the size of its economy, has been at the forefront of drumming up crypto regulations and will be the first to craft regulations for stablecoins if the bill is signed into law.

A stablecoin is a digital asset whose value is linked to the actual asset like gold or the US dollar to maintain price stability. Currently, all stablecoins combined have a market value of about $160 billion.

What the new Japanese stablecoin Bill entails

According to the bill, stablecoins will now be recognized as virtual money tied to the Yen or any other legal tender to ensure that investors can convert them at their current prices.

In addition, the bill noted that stablecoins will only be issued by trusted firms, registered money transfer platforms, and licensed banks. However, existing assets that are backed by stablecoins like Tether and its counterparts stablecoins are not covered by the legislative act.

It’s important to note that the bill was created by Japan’s Financial Agency (FSA) and was expected to be passed by the House in late 2021. In mid-March, 2022, the parliament accepted the bill and today it has been passed officially.

Additionally, FTX Trading Ltd, a crypto exchange platform, also announced today the launch of FTX Japan which will provide services to Japanese consumers.

The post Japanese lawmakers pass stablecoin bill to safeguard crypto investors appeared first on CoinJournal.

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EGLD price drops 6% as team starts investigating suspicious activity on Maiar DEX

The price of the EGLD token, which is the native token of Elrond Network is on the decline and has dropped by more than 6% today after an announcement that the Elrond team had started investing malicious activity on its main decentralized exchange (DEX), Maiar.

At the time of writing, EGLD was trading at $72.39, down 6.01% after dropping from a daily high of $77.48.

Malicious activity investigation

Elrond Founder and CEO, Beniamin Mincu, tweeted that his team was investigating “suspicious activity” on Maiar adding that his team will be providing the update “soon.”

In a later tweet Mincu said:

“Identified the potential issue, and working on an emergency fix.”

According to the reports, the Elrond Network went offline by a way of a “scheduled maintenance” with a message on its site noting that “operations will resume shortly.” However, the exchange has been offline for more than 7 hours.

Now, the rumors are spreading fast with some Elrond supporters saying that the network might have been compromised. 

Elrond has assured its users that they will be updating them once they fix their systems.

Following the incident, both EGLD and MEX, the native token of the Maiar DEX is also down with MEX failing to recover from its significant price drop where it lost almost 90% of its value late Sunday evening.

Maiar, launched late last year, had announced a $1.29 billion liquidity incentive program to improve the activities on the new exchange platform as well as push decentralized finance (DeFi) adoption beyond the crypto space into the mainstream.

At the time of the launch, the smart contracts installed on Elrond and the ones built for Maiar were advertised as having gone through a “rigorous auditing and formal verification.”

The post EGLD price drops 6% as team starts investigating suspicious activity on Maiar DEX appeared first on CoinJournal.