Japan’s stablecoin regulation under the revised Payment Services Act limits issuance to three categories of licensed financial institutions, creates a separate registration regime for intermediaries, and requires all stablecoins to be redeemable at par value. Nearly two years after the framework took effect, only one intermediary has completed registration, underscoring how tightly controlled the rollout remains.
What Japan’s PSA Stablecoin Rules Actually Allow
Japan’s stablecoin framework took effect on June 1, 2023, following amendments to the Payment Services Act passed in 2022. The revised law treats fiat-linked, redeemable stablecoins as “electronic payment instruments,” a legal category distinct from crypto-assets that do not satisfy redemption requirements.
Under the framework, the Financial Services Agency permits only three types of entities to issue digital-money type stablecoins: banks, fund transfer service providers, and trust companies. No other entity, domestic or foreign, may issue stablecoins for circulation in Japan without holding one of these licenses.
The redemption-at-par requirement is central to the regime. S&P Global reported that the framework requires stablecoins to be linked to the yen or another fiat currency and redeemable at face value. Tokens that cannot guarantee par redemption fall outside the stablecoin classification entirely.
Intermediary Registration: A Separate Gate
The FSA does not stop at issuer licensing. Any entity that buys, sells, exchanges, custodies, or transfers stablecoins on behalf of issuers must register separately as an Electronic Payment Instruments Service Provider. This two-layer structure means that even if a stablecoin is legally issued, it cannot reach consumers without a registered intermediary.
Travel-rule obligations also apply. FSA materials confirm that anti-money laundering and travel-rule requirements for stablecoins have been effective since June 2023, covering all registered Electronic Payment Instruments Service Providers. The compliance burden helps explain why the rollout has been gradual rather than open-ended, a pattern that mirrors how tokenized asset infrastructure is developing under strict regulatory guardrails across Asia.
How JPY Stablecoins and USDC Access Fit the Framework
Three Domestic Issuance Models
A joint study by Mitsubishi UFJ Trust and Banking, JPYC, and Progmat outlined three stablecoin issuance options under the revised PSA: bank deposit-backed digital money, fund-transfer type, and trust-type stablecoins. Each model carries different reserve, capital, and operational requirements.
The bank deposit-backed model ties stablecoin value directly to deposits held at the issuing bank. The fund-transfer type operates under existing remittance rules, with a cap of JPY 1 million per transaction. The trust-type model allows a trust company to hold reserves backing the token, offering a structure suited to non-bank financial institutions.
This segmentation matters because JPY-denominated tokens can sit in entirely different legal categories depending on their structure. Legacy prepaid yen tokens issued before the 2023 framework should not be conflated with post-PSA redeemable stablecoins. JPYC itself has explicitly distinguished between its older prepaid-payment instrument tokens and the newer trust-type or fund-transfer-type structures enabled by the revised law.
USDC: The First Foreign Stablecoin Path
The practical test of Japan’s intermediary regime arrived on March 4, 2025, when SBI VC Trade received Registration No. 00001 as an Electronic Payment Instruments Exchange Service Provider. The registration enabled SBI VC Trade to handle USDC for the first time in Japan.
As of that date, the FSA’s registered-provider list showed exactly one approved intermediary. The fact that nearly two years elapsed between the framework’s effective date and the first registration illustrates the high bar Japan sets for market entry, something that echoes concerns raised during recent institutional custody debates in other jurisdictions.
“There should be a high hurdle for the entry of foreign players.”
— Yuichiro Saka, via S&P Global
Circle CEO Jeremy Allaire noted that Japan has long been at the forefront on clear rules for the use of stablecoins. The combination of Circle’s engagement and SBI VC Trade’s registration suggests that foreign stablecoin access in Japan will be intermediary-led, not issuer-led, with domestic registered firms serving as the gateway.
Why Japan’s Stablecoin Model Matters Across Asia
Japan’s approach offers a reference point for regulators across Asia, but it is not yet a template being actively copied. The framework’s defining features, issuer restrictions, separate intermediary licensing, par-value redemption, and travel-rule compliance, represent one of the most structured stablecoin regimes globally.
For Southeast Asian exchanges, remittance operators, and custody providers, Japan’s model signals what compliance-heavy stablecoin access looks like. Any firm seeking to distribute stablecoins into or through Japan must either hold a domestic license or partner with a registered intermediary, a reality that raises the cost and complexity of cross-border digital asset operations in the region.
This article does not have verified evidence of direct ASEAN policy changes driven by Japan’s framework. However, the structural clarity of the Japanese model, particularly the separation between issuance and distribution, is relevant to regional jurisdictions that are still defining their own stablecoin rules.
What Regional Operators Should Watch Next
The FSA’s registered-provider list currently shows one entry. Additional registrations, whether for USDC or other electronic payment instruments, would signal that the intermediary pipeline is accelerating. Any trust-type JPY stablecoin launch by a major bank would mark the first full domestic issuance under the new regime.
Japan’s fund-transfer type cap of JPY 1 million per transaction also bears watching. If regulators adjust that threshold, it could reshape how JPY stablecoins compete with traditional remittance channels, a development with direct implications for Southeast Asian payment corridors.
For now, Japan’s stablecoin regime remains a high-bar, license-driven system where adoption is measured in registrations, not token launches. The pace is deliberate, and that deliberateness is itself the regulatory signal.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
