【The Japanese Financial Services Agency Proposes Easing Reserve Requirements for Trust Banks Issuing Stablecoins and Implementing Travel Rules】Golden Finance reports that the Japanese Financial Services Agency (FSA) recently presented some ideas regarding cryptocurrencies and stablecoins to the Financial System Council's Payment Services Working Group, which mentioned its reluctance to allow banks other than trust banks to issue stablecoins. As for stablecoins issued by trust banks, the FSA hopes to ease the current reserve requirement that all assets must be held in the form of bank demand deposits. However, the FSA also wishes to implement travel rules, requiring that stablecoin transfers issued by trust banks undergo KYC. Japan passed stablecoin legislation in 2022, supporting banks, licensed remittance companies, and trust companies in issuing stablecoins. As part of its working group's presentation, the FSA distinguished between stablecoins issued on permissioned blockchains and those on public blockchains. It expressed satisfaction with the existence of these three types of stablecoins on permissioned chains but took a cautious stance on allowing licensed deposit institutions to issue stablecoins on non-permissioned chains.