Japan FSA Seeks Regulatory Changes for Yen Stablecoin Transactions
The Financial Services Agency (FSA) in Japan is pushing for regulatory changes to simplify trading procedures for yen stablecoins. The agency plans to include a measure to cut tax-related administrative procedures in the distribution process of trust-type stablecoins, which have effectively blocked transactions.
In Japan, each time the holder of a stablecoin changes, paperwork listing the owner's information must be filed with a tax office. Demand existed to use stablecoins for high-value payments such as cars and real estate, but actual use was difficult due to these procedures.
The agency is seeking revisions to the inheritance tax law and the income tax law to uniformly eliminate filings. Authorities are holding discussions with the aim of setting out the broad outline of tax revisions to be finalized by year-end, targeting institutionalization from fiscal 2027 onward.