Japan Leads in Regulation, But Not in Usage
At the WebX Fintech EXPO in Osaka, panelists highlighted the disconnect between Japan’s strong regulatory framework and its relatively slow stablecoin adoption. Since 2022, Japan has had clear rules for digital assets, giving it a first-mover advantage in Asia.
On August 19, the Financial Services Agency (FSA) approved JPYC, the first yen-backed stablecoin, scheduled for issuance this fall. By contrast, in the United States, Tether’s USDT and Circle’s USDC were widely adopted before federal rules existed. The GENIUS Act, signed in July 2025, now places issuances over $10 billion under federal oversight.
Kenta Sakakibara, Circle’s Japan Manager, pointed to key contrasts:
- “Japan introduced pioneering stablecoin regulations in 2022, serving as a reference for other countries.”
- “US legislation now subjects large issuances to federal supervision.”
- “Transaction caps differ, with Japan limiting transfers to ¥1 million, contrasting sharply with the US.”
Yield, Compliance, and AML Challenges
Akio Isowa of Sumitomo Mitsui Financial Group explained that U.S. stablecoin adoption thrives on higher yields.
He also flagged anti-money laundering concerns, stressing that issuers, not banks, must ensure AML compliance:
Operational Hurdles for Providers
Tatsuya Saito, CEO of Progmat, a platform built with Japan’s largest banks, described how rules vary depending on the issuer:
For retail, transactions rarely exceed ¥1 million, but wholesale transfers for corporations face stricter oversight. Saito emphasized that aligning compliance requirements across use cases remains a challenge.
Global Ripple Effects and Market Potential
Circle is betting heavily on Japan’s future role in stablecoins. Sakakibara explained:
Panelists compared Japan’s experience to QR-code cashless payments, which initially caused confusion before becoming standardized. Isowa suggested stablecoins could follow the same path:
Technical Advantages and Long-Term Outlook
Saito highlighted why stablecoins could eventually outperform existing cashless systems:
