Japan Advances Stablecoin Regulations with Strict Reserve Requirements
Japan's Financial Services Agency has unveiled draft rules for stablecoin reserves, marking a pivotal step in its 2025 Payment Services Act overhaul. The regulations mandate that only high-grade foreign bonds—those rated '1-2' or higher—qualify as reserve assets for trust-structured stablecoins. This MOVE tightens oversight while positioning Japan as a leader in regulated digital payments.
The consultation process reflects Tokyo's deliberate approach to balancing innovation with financial stability. By setting clear parameters for stablecoin issuers, Japan aims to create a trusted ecosystem for blockchain-based payments without stifling market growth.