Japan’s regulatory framework for stablecoins enables banks and licensed firms to issue tokens for corporate foreign exchange settlements.
Circle and Nomura are collaborating to provide stablecoin-based foreign exchange settlement services for Japanese corporations. The initiative leverages Japan’s Payment Services Act, which permits regulated financial entities to issue stablecoins for transactions.
Japan became the first major economy to establish a legal framework for stablecoins, distinguishing them from cryptocurrencies under separate regulatory oversight. A recent bill passed by Japan’s Lower House aims to shift crypto assets to the Financial Instruments and Exchange Act, potentially lowering capital gains tax from 55% to 20%.
The move could streamline cross-border payments for businesses, aligning with Japan’s push to integrate digital assets into traditional financial systems.