- Japan’s Financial Services Agency announced revised rules recognizing foreign-issued trust-type stablecoins as Electronic Payment Instruments.
- The revision means foreign stablecoins that meet certain requirements can be used as lawful payment instruments in Japan.
- Local firms including SBI VC Trade are considering services tied to global stablecoins such as USDC.
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Japan’s Financial Services Agency has finalized rules allowing foreign-issued stablecoins to be incorporated into the country’s payment system.
BeInCrypto reported on May 19 that the FSA issued revised regulations recognizing foreign-issued trust-type stablecoins as Electronic Payment Instruments. The rules will take effect on June 1.
Trust-type stablecoins are digital assets backed by fiat reserves held in trust and redeemable at the same value. Under the revision, foreign stablecoins that meet certain requirements will be allowed for lawful payment use in Japan.
Until now, the practical use of foreign-issued stablecoins in Japan had been constrained because they were either classified as securities or left in a regulatory gray area. The rule change opens a path for them to be brought into Japan’s payment system.
The FSA will review whether overseas issuers maintain licensing, audit and anti-money laundering standards equivalent to those required in Japan, along with reserve backing in the same currency. Domestic intermediaries will bear primary responsibility for screening eligibility, and local firms including SBI VC Trade are considering services tied to global stablecoins such as USDC.