Japan’s Financial Services Agency has proposed tax reform measures for fiscal year 2027 that would exempt trustees from mandatory reporting each time a trust-type stablecoin changes hands. The current system requires documentation for every beneficiary change, creating significant friction for digital payments across the country. The proposal also aims to remove the de facto ceiling of 1 million yen on personal-use stablecoin transactions, which would enable larger purchases such as vehicles or real estate deposits rather than limiting transactions to small retail payments. This reform builds on Japan’s 2023 amendment to the Payment Services Act, which classified trust-issued stablecoins as electronic payment instruments rather than crypto assets. The FSA’s proposal would also align the tax treatment of foreign-issued trust-type stablecoins with that of domestic counterparts.
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