Japan Unveils Ambitious Stablecoin Reserve Rules to Strengthen Financial Security
Japan's Financial Services Agency (FSA) has launched a public consultation on proposed regulations governing reserve assets for stablecoins. The MOVE signals Tokyo's methodical approach to modernizing oversight of digital payments while maintaining financial stability.
The draft rules, tied to amendments to the Payment Services Act slated for 2025 implementation, establish clearer investment parameters for stablecoin issuers using trust-based structures. Reserve management criteria will become more restrictive, particularly regarding bond collateral eligibility.
This regulatory package forms part of Japan's broader framework for crypto service providers and financial institutions. Market participants have until February 2026 to submit feedback before finalization.
