Japan Grants USDC Special Status in Electronic Payments
Date: 2025-03-06 Author: Henry Casey Categories: BUSINESS
As Circle co-founder Jeremy Allaire reported, this gives the company the right to use the USDC stablecoin in its payment system in full compliance with Japanese law.
The Japanese authorities changed the legal classification of digital assets back in June 2023, recognizing stablecoins as “electronic means of payment.” This change allowed licensed financial intermediaries to work with overseas operators, but under the strict supervision of the Financial Services Agency (FSA). Thus, companies like SBI VC Trade were able to legally integrate stablecoins into their ecosystems, ensuring their use in payment transactions.
In addition, the FSA has previously announced its intention to review the legislation related to cryptocurrencies and stablecoins. The regulator is considering classifying digital assets as financial products, which would put them on par with traditional securities. Such a move could lead to stricter regulation of the industry, but at the same time expand the possibilities of using digital assets in the country's financial system.
Granting SBI VC Trade the right to work with USDC within the electronic payment system could contribute to the further spread of stablecoins in the Japanese economy. It could also increase the level of trust in such assets among users and institutional investors. If the FSA finally approves the status of digital assets as financial products, this could lead to even more active involvement of traditional banks and financial institutions in working with cryptocurrencies.
Thus, Japan continues to develop the regulatory system for digital assets, creating conditions for their safe use and integration into the country's economy.
