Japan Finalizes Regulations on Foreign Stablecoin Operations

Japan has taken another step towards embracing digital assets with the introduction of new regulations governing foreign-issued stablecoins. Under the revised framework, foreign trust-type stablecoins that meet Japanese regulatory standards can operate in the country under the Payment Services Act.

The rules, which take effect on June 1, 2026, require issuers to meet strict conditions before their tokens can be used by Japanese service providers. These conditions include obtaining a license equivalent to Japan's rules, maintaining collateral management and regular audits, as well as cooperation with a foreign regulator that can collaborate with Japanese authorities.

The new regulations aim to provide a clear pathway for regulated foreign stablecoins to operate in Japan, while also promoting the development of AI-driven blockchain finance. This initiative is part of Japan's broader strategy to link its financial system with digital payment infrastructure and potentially integrate Bank of Japan current account deposits onto blockchain technology.