Key Highlights
- Japan’s FSA is seeking public opinion on draft rules for stablecoin reserve assets and crypto supervision under the 2025 Payment Services Act amendments.
- Only certain foreign-issued bonds with high credit ratings and large issuance can back stablecoins under trust structures.
- Banks, insurance firms, and subsidiaries must clearly explain crypto risks to customers, and foreign stablecoin issuers cannot target Japanese users directly.
Japan’s Financial Services Agency (FSA) is seeking opinions from the public concerning new draft rules that will govern how stablecoins are backed and how crypto-related services are supervised under the country’s updated payments law.
This process is open until February 27, 2026, and follows previous changes on the Payment Services Act, which was passed in June 2025 to set the rules for how money and electronic payments are handled in the country.
In a statement released on Monday, the FSA said it has prepared a set of draft regulatory notices linked to Act No. 66 of 2025. These notices are part of the country’s overhaul of rules that cover its settlement system and electronic payment methods. The agency explained that the drafts are meant to define how regulated stablecoins should be backed and supervised under the law.
Clear rules for stablecoin reserve assets
One major part of the rules focuses on reserve assets used by regulated stablecoins that rely on trust structures. In Japan, companies that issue stablecoins often rely on a structure known as “specified trust beneficiary interests.” The new rules explain how assets under this structure can be invested and what types of financial products are allowed to support stablecoin value.
According to the draft notice, only certain foreign-issued bonds will qualify as reserve assets. The FSA said these bonds must meet two conditions. First, they must carry a very high credit rating and fall within a credit risk category of “1–2” or higher, as assessed by an approved rating agency. Second, the foreign issuer must have a very large bond market, with at least 100 trillion yen in bonds already issued.
New guidelines for banks and subsidiaries
The regulator also released updated supervisory guidelines for banks, insurance companies, and their subsidiaries. A newly added rule says that when a subsidiary offers cryptocurrency intermediation services, it must give customers clear and appropriate explanations about the risk involved.
The FSA said the measure is to prevent people from thinking a crypto product is safe just because it is offered by a well-known financial group.
For companies that want to handle stablecoins issued outside Japan, the draft rules add another requirement. Firms must explain that the foreign issuer will not issue, redeem, or actively promote stablecoins to everyday users in Japan. The FSA said it will also work with overseas regulators to share information about these stablecoins and their issuers.
Japan’s push for a regulated stablecoin market
The consultation is part of Japan’s attempt to build a regulated stablecoin environment. In October 2025, local fintech company JPYC launched what it described as Japan’s first legally recognized yen-backed stablecoin.
The country’s three major banks, MUFG, SMBC, and Mizuho, have also been testing stablecoins and tokenized deposits for payments and settlements, with formal backing from the FSA in December.
With the stablecoin market becoming a thing of interest in the country. Japan is pushing to protect customers by making sure banks and subsidiaries explain risks when offering crypto services. Limiting eligible reserve assets to high-quality foreign bonds reduces financial risk and ensures stability. The FSA said the rules will be finalized after the public comment period ends and will be enforced following the necessary legal steps.
Also Read: Japan May Allow Crypto ETFs by 2028 as Global Markets Move Ahead
