Japan Stablecoin Policy
Japan’s regulatory policy permitting licensed banks, trust companies, and fund transfer providers to issue fiat-backed stablecoins under strict reserve requirements.
What is Japan Stablecoin Policy?
Japan’s stablecoin framework, established through 2023 amendments to the Payment Services Act, classifies stablecoins as “currency-denominated assets” and allows issuance by regulated entities like banks and trusts, with reserves in short-term Japanese Government Bonds for yen-denominated tokens. In 2025, the Financial Services Agency approved the first yen-pegged stablecoin by startup JPYC, marking a historic shift, and Circle’s USDC became the first foreign stablecoin licensed in March 2025. The 2025 amendments reduced burdens on issuers by permitting investments in government bonds and lowering entry barriers, aiming to promote stablecoin adoption for cross-border payments while maintaining strong oversight for stability.
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