TechFlow news — Circle co-founder and CEO Jeremy Allaire said that with Japan's stablecoin regulation under the amended Payment Services Act taking effect on June 1, Circle is considering issuing stablecoins in the country. He noted that if stablecoins see broader adoption in cross-border trade, foreign exchange transactions, and global commerce, Japan could become an extremely large market.
Under Japan’s revised Payment Services Act, stablecoins are recognized as “electronic payment instruments” and their issuance is permitted. Issuers must comply with strict requirements, including pegging the stablecoin to the yen or other legal tender and guaranteeing holders the right to redeem at face value. Only licensed financial institutions such as banks, registered money transfer agents, and trust companies may issue stablecoins.
Allaire stated that Japan’s stablecoin legislation makes it one of the first countries to establish a regulatory framework for overseas stablecoin usage, calling it one of the most important initiatives undertaken by the government and the Financial Services Agency. He also revealed Circle’s interest in forming partnerships in Japan, noting that he visited the country last month.
In December last year, Japan’s Financial Services Agency lifted its ban on foreign-issued stablecoins. The new legislation creates a more open and regulated environment conducive to the development of Japan’s stablecoin market.
