Japan Eases Stablecoin Transaction Limits as Institutional Ambitions Grow

Japan's Financial Services Agency (FSA) has relaxed its stance on stablecoin transactions by removing the 1 million yen limit. This threshold previously restricted Type II Fund Transfer Service Providers (FTSPs) from facilitating large-scale payments with stablecoins.

The move signals Japan's ambitions to promote institutional adoption of stablecoins, which are classified as Electronic Payment Instruments under an amended Payment Services Act that came into effect in 2023.

Japan is set to establish a dedicated Crypto Assets and Stablecoins Division by August 7, 2026. The country also plans to launch its first regulated yen-pegged stablecoin, JPYC, by 2025.

The FSA aims to create pathways for foreign-issued stablecoins to operate within Japan's regulatory perimeter through equivalence frameworks slated to take effect in June 2026. This could open up a significant market opportunity for global stablecoin issuers like Circle and Tether.