Japan Opens Public Consultation on New Stablecoin Rules

The Japan Financial Services Agency (FSA) is seeking public feedback on a new draft of rules governing bonds used to back stablecoins. These regulations are a critical step in implementing the 2025 Payment Services Act, which clarifies the creation and management of stablecoins in Japan. According to the announcement, the consultation will run through to February 27, 2026.

New Stablecoin Draft Introduces a New Check

According to the FSA, the proposed rules will determine which types of trust holdings qualify as reserves that stablecoin issuers are required to maintain. The rules will also specify eligible bonds for backing stablecoins, with particular emphasis on those pegged to the Japanese yen. Once finalized, these standards will apply to all yen-linked stablecoins regulated within the country.

Notably, the consultation reflects Japan’s broader effort to strengthen consumer protection and financial stability while encouraging responsible innovation in digital assets. Under the draft framework, the FSA aims to clearly define asset composition requirements for stablecoin reserves. 

By limiting collateral to approved bond types and trust structures, the agency aims to mitigate credit risk, and enhance transparency. It also ensures that stablecoin issuers can fulfill redemption obligations even during periods of market stress.

The public consultation period allows stakeholders to submit opinions, suggest revisions, and raise operational concerns before the standards are finalized. The finalized rules will play a decisive role in shaping Japan’s stablecoin ecosystem. Issuers operating under the Payment Services Act will be required to structure their reserves strictly according to the FSA’s guidelines. 

2026 Set as Japan’s Digital Turning Point

Japan has begun 2026 with a strong policy signal towards digital finance. Finance Minister Satsuki Katayama has shown strong support for bringing digital assets into Japan’s traditional financial system.

Katayama stressed that stock and commodity exchanges play a central role in expanding public access to digital and blockchain-based assets. The finance minister pointed to developments in the United States to support her vision.

During her speech, Katayama officially described 2026 as the digital year and pledged full government support for stock and commodity exchanges.

Japan and Crypto-Friendly Financial Reforms

Japan has already taken steps to change its financial system. Recall that the regulators discussed letting banks trade and hold crypto assets like traditional securities. The agency also approved Japan’s first yen-pegged stablecoin, JPYC, during the same period.

Authorities are also considering a major tax change for cryptocurrencies. The proposal would cut the top tax rate from 55% to 20%. This could make investing in digital assets more appealing to both individuals and institutions.