Japan's FSA Officially Designates Foreign Trust-Based Stablecoins as Electronic Payment Methods, Effective June 1

According to Japan's Financial Services Agency (FSA), on May 19, the regulator officially classified foreign trust-based stablecoins as electronic payment methods under the Payment Services Act. The new framework, effective June 1, 2026, recognizes trust beneficiary rights established under foreign laws equivalent to Japan's regulatory standards, providing legal compliance for foreign-issued trust-based stablecoins to circulate in Japan. The FSA also clarified that such foreign trust beneficiary rights are not to be treated as securities under the Financial Instruments and Exchange Act.
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