Japan Lifts Stablecoin Cap, Enabling Bigger Transactions and Institutional Competition
Japan's Financial Services Agency (FSA) has lifted the ¥1,000,000 ($6,276 USD) per-transaction ceiling for second-category stablecoin operators. This move allows them to process larger transactions and compete with trust-bank-backed Type III Electronic Payment Instruments.
The cap removal is part of a broader reorganization of Japan's crypto oversight. The FSA has created its first dedicated Cryptocurrency and Stablecoin Division, which will oversee the larger transactions permitted by the amended Payment Services Act.
JPYC Inc., operator of Japan's first fully regulated yen-pegged stablecoin, can now compete structurally with JPYSC for institutional business. This is because the transaction-size ceiling that forced institutional clients to choose the more expensive trust-bank product no longer exists.