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Sir Keir Starmer has said Boris Johnson has “corroded trust” in MPs after a U-turn on reforming the disciplinary system for MPs and veteran Tory Owen Paterson’s breach of lobbying rules.

The Labour leader told an emergency debate in the Commons that the prime minister gave the “green light to corruption” last week when Conservatives were given a three-line whip to support a proposal to set up a new committee, chaired by a Conservative MP, to draw up plans for a new appeals system.

However, only 250 MPs backed the proposal and opposition MPs vowed to boycott the committee before leader of the House Jacob Rees-Mogg announced a U-turn, saying any reforms to the standards system would need cross-party support.

MPs also chose not to back the cross-party Standards Committee’s call for a six-week ban from parliament for Mr Paterson, but hours later he resigned as an MP saying the situation was too much for his family.

Sir Keir told the Commons, from where Mr Johnson was absent: “Instead of repairing the damage he has done, the prime minister is running scared.”

He added that Mr Johnson was acting on the basis of “self-preservation not the national interest”.

Sir Keir Starmer said: “When the prime minister gives the green light to corruption, he corrodes that trust.

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“When he says the rules to stop vested interests don’t apply to his friends, he corrodes that trust and when he deliberately undermines those charged with stopping corruption he corrodes that trust.

“And that is exactly what the prime minister did last week.”

Hours before Monday’s Commons debate, Boris Johnson declined to apologise for his handling of the scandal surrounding Mr Paterson and said it is “very important” to get the standards system right.

The PM is not attending the debate as he had a prior visit booked at a hospital in Northumberland and Chancellor of the Duchy of Lancaster Steve Barclay is responding for the government.

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In a sign that the controversy could be affecting support for the government, an Ipsos MORI poll puts Labour on 36% and the Tories on 35%.

Satisfaction in the way the PM is doing his job has fallen five points since September (39% to 34%), while 61% are dissatisfied with his performance (up 10 points in the same time span).

The telephone poll was conducted over the course of seven days. The vote on whether to spare Mr Paterson suspension and the subsequent government U-turn, only occurred in the final three days of the polling period.

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Japan’s FSA backs joint stablecoin initiative by nation’s top banks

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Japan’s FSA backs joint stablecoin initiative by nation’s top banks

Japan’s financial regulator, the Financial Services Agency (FSA), endorsed a project by the country’s largest financial institutions to jointly issue yen-backed stablecoins.

In a Friday statement, the FSA announced the launch of its “Payment Innovation Project” as a response to progress in “the use of blockchain technology to enhance payments.” The initiative involves Mizuho Bank, Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corporation, Mitsubishi Corporation and its financial arm and Progmat, MUFG’s stablecoin issuance platform.

The announcement follows recent reports that those companies plan to modernize corporate settlements and reduce transaction costs through a yen-based stablecoin project built on MUFG’s stablecoin issuance platform Progmat. The institutions in question serve over 300,000 corporate clients.

The regulator noted that, starting this month, the companies will begin issuing payment stablecoins. The initiative aims to improve user convenience, enhance Japanese corporate productivity and innovate the local financial landscape.

Related: Japan regulator proposes crypto rule overhaul in line with securities law

The participating companies are expected to ensure that users are protected and informed about the systems they use. “After the completion of the pilot project, the FSA plans to publish the results and conclusions,” the announcement reads.

The announcement follows the Monday launch of Tokyo-based fintech firm JPYC’s Japan-first yen-backed stablecoin, along with a dedicated platform. The company’s president, Noriyoshi Okabe, said at the time that seven companies are already planning to incorporate the new stablecoin.

Related: Japan’s finance Minister endorses crypto as portfolio diversifier

Japanese regulators focus on crypto

Recently, Japanese regulators have been hard at work setting new rules for the cryptocurrency industry. So much so that Bybit, the world’s second-largest crypto exchange by trading volume, announced it will pause new user registrations in the country as it adapts to the new conditions.

Local regulators seem to be opening up to the industry. Earlier this month, the FSA was reported to be preparing to review regulations that could allow banks to acquire and hold cryptocurrencies such as Bitcoin (BTC) for investment purposes.

At the same time, Japan’s securities regulator was also reported to be working on regulations to ban and punish crypto insider trading. Following the change, Japan’s Securities and Exchange Surveillance Commission would be authorized to investigate suspicious trading activity and impose fines on violators.