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      Japan's FSA Lifts Cap on Stablecoin Transactions, Paving Way for Institutional Use

      Japan's Financial Services Agency (FSA) has announced the removal of the 1 million yen (approximately $6,700) cap on stablecoin transactions, a significant change that aims to facilitate larger institutional transactions. This adjustment follows the classification of stablecoins as Electronic Payment Instruments under the amended Payment Services Act enacted in 2023, which restricts stablecoin issuance to licensed entities such as banks and trust companies.

      The FSA's decision is expected to enhance the utility of stablecoins beyond retail payments, allowing for greater flexibility in financial transactions. Additionally, the agency plans to establish a dedicated Crypto Assets and Stablecoins Division, which is set to begin operations on August 7, 2026. This division will oversee the regulatory framework for stablecoins, including the anticipated launch of Japan's first regulated yen-pegged stablecoin, JPYC, by 2025.

      Furthermore, an equivalence framework for foreign-issued stablecoins is expected to be implemented in June 2026, potentially allowing international stablecoin issuers like Circle and Tether to enter the Japanese market. This development could significantly alter the landscape for stablecoin transactions in Japan, which has historically been restrictive due to stringent licensing requirements. The transitional period leading up to these changes will last approximately 12 to 18 months, during which Japan will operate under existing rules.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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