Japan Eases Stablecoin Transaction Ceiling to $6,700

Japan's Financial Services Agency (FSA) has announced that it will allow stablecoin transactions exceeding 1 million yen, roughly $6,700. This move signifies the country's ambition to attract institutional investors and deepen its crypto market.

The FSA classified stablecoins as Electronic Payment Instruments under an amended Payment Services Act in 2023. The act restricted stablecoin issuance to licensed entities, including banks, trust companies, and specific fund transfer service providers. Type II FTSPs were subject to a transaction ceiling of 1 million yen per transfer.

The FSA plans to establish a dedicated Crypto Assets and Stablecoins Division on August 7, 2026. Japan is expected to launch its first regulated yen-pegged stablecoin, JPYC, by 2025. The country will also introduce equivalence frameworks for foreign-issued stablecoins in June 2026.

The move could open a significant market for global stablecoin issuers like Circle and Tether. Japan's strict licensing requirements have kept most foreign stablecoins out of domestic exchanges, but the formal equivalence pathway would change that calculus.