Japan to Lift 1 Million Yen Cap on Certain Stablecoin Transfers

Japan's Financial Services Agency (FSA) is set to allow stablecoin transfers above 1 million yen (about $6,700), easing a limit that has functioned as a hard cap for some payment providers. Stablecoins were formally classified as "Electronic Payment Instruments" under Japan's amended Payment Services Act in 2023. The regime restricts stablecoin issuance to licensed entities—banks, trust companies, and designated fund transfer service providers. Within that group, Type II fund transfer service providers (FTSPs) have been bound by a 1 million yen per-transfer ceiling, constraining stablecoin use largely to small retail payments. The regulator also plans to create a dedicated Crypto Assets and Stablecoins Division, scheduled to begin operations on August 7, 2026. Japan is expected to see the debut of JPYC, described as the country's first regulated yen-pegged stablecoin, in 2025. Rules establishing equivalence frameworks for foreign-issued stablecoins are slated to take effect in June 2026, potentially enabling tokens minted outside Japan to operate under the country's regulatory perimeter. The 2023 amendments already set the legal baseline by defining stablecoins as fiat-pegged instruments redeemable at par and issued by licensed entities. For global issuers such as Circle and Tether, the planned equivalence framework could open a market that has largely been off-limits. Japan's strict licensing rules have kept most foreign stablecoins off domestic exchanges, but a formal equivalence route would materially shift access. With the new FSA division not expected to be operational until mid-2026 and the equivalence framework arriving around the same time, Japan is likely to navigate a roughly 12–18 month transition period under interim rules.