Upbit Lists Japan's Yen Stablecoin, Raising Concerns Over Cross-Border Money Flows

South Korea's Upbit exchange has become the first to list Japan's yen stablecoin, JPYC. This milestone allows Korean investors to buy and sell a cryptocurrency tied to the value of the yen using won, without converting their money into Japanese currency. JPYC is pegged one-to-one to the Japanese currency, making it a useful tool for cross-border transactions.

The listing has sparked concerns among regulators about the potential for increased overseas money flows through foreign-currency stablecoins. In June, stablecoins worth 2.7625 trillion won ($2 billion) left South Korea's five largest exchanges for overseas platforms. The majority of these flows were dollar-pegged stablecoins like Tether.

JPYC's listing is expected to improve access to the yen stablecoin for domestic users. One cryptocurrency user noted that investors can now buy JPYC directly with won on Upbit and move it to a personal wallet, potentially reducing fees associated with currency exchange or overseas card payments.