Global Stablecoin Regulation
Japan operates a clear, conservative stablecoin regime. Fiat-pegged, par-redeemable stablecoins are regulated as electronic payment instruments (EPIs) under amendments to the Payment Services Act (PSA). Issuance and handling are limited to licensed entities under the FSA framework, with strong AML/CFT and consumer-protection rules. The core regime has applied since June 2023, and authorities refined it through 2024–2025. Commercial roll-out is gradual: JPYC was authorized as the first licensed issuer in August 2025, while Circle–SBI are advancing USDC distribution via banking and market partnerships under Japan's rules.
Legal Status
Legal with restrictions
Regularity Clarity
5/5
Regime Status
In-Force
Allowed Types
Fiat Referenced
Classification
Payment Instrument
Electronic payment instrument (EPI) for fiat-backed, par-redeemable stablecoins. Other designs fall under crypto-assets or, if structured as investment contracts, potentially securities.
Regulatory Authorities
Top Issuers
Consumer Protection
Reserve Requirements
EPIs must be fully backed (1:1) by eligible fiat or high-quality liquid assets (for example, bank deposits, JGBs where permitted), with appropriate segregation (including trust structures) depending on issuer type.
Auditing
Regular, independent verification and audited financial statements are expected. Ring-fencing applies for trust-type arrangements. Cadence and standards are detailed in FSA guidance and follow-on rules.
Redemption Rights
Holders have a statutory right to redeem at par in fiat. Issuers must publish redemption procedures and ensure timely conversion via licensed channels.
