How are stablecoins regulated in Japan?

Japan's stablecoin law sits inside the Payment Services Act, the same law that governs crypto exchanges and money transfer firms. It treats a stablecoin pegged to a currency and redeemable at face value as an electronic payment instrument, which is a separate category from crypto assets like bitcoin. The wider crypto rulebook is covered in our guide to how crypto is regulated in Japan.

What is Japan's stablecoin law?

Japan's parliament passed the amendments on June 3, 2022, Cointelegraph reported, citing Nikkei. The law limits issuance to licensed banks, registered money transfer agents and trust companies, so a company without one of those licenses cannot issue one. The Financial Services Agency (FSA) says the framework for electronic payment instruments has been in effect since June 2023.

How does Japan's stablecoin framework work?

The rules split the work into two roles. Issuers create and redeem the coins. Intermediaries, called electronic payment instrument exchange service providers, let customers buy, sell and transfer them, and they must be registered too.

These intermediaries count as virtual asset service providers for the travel rule, so they must pass sender and recipient details along with transfers, the FSA says.

Foreign coins can enter through a registered intermediary. SBI VC Trade said on March 4, 2025 that it was the first company in Japan to complete registration to handle USDC, with a beta service planned for later that month.

The issuer type also matters. A coin issued by a fund transfer service provider is subject to a limit of 1 million yen on transactions and balances, The Block reported. SBI says its trust-based coin, described below, is not bound by that cap.

What is the JPYC stablecoin?

JPYC is a yen-backed stablecoin from JPYC Inc., which registered as a fund transfer service provider with the FSA in August 2025. Issuance began on October 27, 2025, The Block reported, making it Japan's first legally recognized yen stablecoin. The company says each JPYC is backed fully by yen deposits and Japanese government bonds. It runs on Ethereum, Avalanche and Polygon, and users buy and redeem it through a platform called JPYC EX after identity checks.

What other yen stablecoins exist in Japan?

On June 24, 2026, SBI Group launched JPYSC, a trust-based yen stablecoin issued through SBI Shinsei Trust Bank, The Block reported. SBI said it was classified as an electronic payment instrument and would be sold only through SBI VC Trade accounts at first, while its tax treatment was still being clarified. Two days later, Financial Services Minister Satsuki Katayama called it a landmark initiative and said some technical points still needed clarification.

As of November 2026, the rules continue to evolve. Rules differ by country and change often. Check the FSA or a qualified professional for your own situation.