Japan Lifts Stablecoin Cap, Allowing Larger Transactions for Licensed Operators

Japan's Financial Services Agency has lifted the ¥1,000,000 transaction ceiling for second-category stablecoin operators, allowing them to process larger transactions and compete with first-category providers.

The cap removal affects licensed Funds Transfer Service Providers under Japan's revised Payment Services Act, including JPYC Inc., operator of Japan's first fully regulated yen-pegged stablecoin.

JPYC had faced a structural limitation due to the ¥1 million ceiling, which forced institutional clients to choose more expensive trust-bank products. With the cap removed, JPYC can now compete with JPYSC for institutional business.

The FSA has also established its dedicated Cryptocurrency and Stablecoin Division to oversee larger transactions and provide regulatory permanence.