Japan’s Financial Services Agency is lifting the 1 million yen cap (approximately $6,700) that restricted stablecoin transactions for certain service providers. This move sets the stage for the launch of JPYC, Japan’s first regulated yen-pegged stablecoin, expected by 2025. Japan’s regulatory framework, established under the amended Payment Services Act of 2023, restricts stablecoin issuance to licensed entities: banks, trust companies, and specific fund transfer service providers. An equivalence framework for foreign-issued stablecoins is set to take effect in June 2026, potentially opening the Japanese market to global issuers like Circle and Tether. The FSA will establish a dedicated Crypto Assets and Stablecoins Division on August 7, 2026, with a transitional period of 12 to 18 months.
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