FSA study group member warns that large-scale stablecoin redemptions could force issuers to sell Japanese government bonds

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A member of a Financial Services Agency (FSA) study group warned that large stablecoin redemptions could force issuers to sell Japanese government bonds held as token reserves, and questioned whether current rules can address the related risks. Meeting participants also raised concerns about the regulatory boundaries for token lending, as well as anti-money laundering screening, asset custody, and emergency shutdown authority on public blockchains.