[DigitalToday reporter Jinju Hong] Japan's Financial Services Agency is pushing for regulatory changes to simplify trading procedures for yen stablecoins and enable individuals to make transactions above 1 million yen.

CoinPost, a blockchain media outlet, reported on Tuesday that the agency plans to include the measure in a request for tax revisions in the near future.

The key is to cut tax-related administrative procedures in the distribution process of trust-type stablecoins, which have effectively blocked transactions. In Japan, it is known that each time the holder of a stablecoin changes, paperwork listing the owner's information must be filed with a tax office. Demand existed to use stablecoins for high-value payments such as cars and real estate, but actual use was difficult.

The agency is reported to seek revisions to the inheritance tax law and the income tax law to uniformly eliminate such filings. Authorities are holding discussions with the aim of setting out the broad outline of tax revisions to be finalised by year-end, and are targeting institutionalisation from fiscal 2027 onward.

The discussions are also tied to asymmetry in Japan's regulatory framework for yen stablecoins. JPYC's funds-transfer model has a limit of 1 million yen per issuance and redemption. By contrast, JPYSC's trust-type model has no 1 million yen limit on issuance and redemption itself. That is also why market attention is focused on easing the 1 million yen ceiling.

The direct focus of the report, however, is not adjusting the ceiling for the funds-transfer type but simplifying procedures for trust-type transactions. The agency is reported to have focused on cutting procedures accompanying trust-type stablecoin transactions to smooth distribution.

JPYC CEO Noritaka Okabe (오카베 노리타카) posted on X, formerly Twitter, on Monday that, in his personal view, easing JPYC's 1 million yen limit was an expected course. He also said trust-type stablecoins are subject to de facto transfer restrictions and cannot ensure fair competition. The comments highlighted a perceived wide gap between what is allowed under the制度 and what is actually usable.

The market sees trust-type and funds-transfer type regulations as having restricted distribution in different ways. In particular, even if trust-type stablecoins have no legal cap on issuance and redemption, the burden of tax processing has acted as a barrier that blocks transactions. As a result, if the tax revision request is reflected, the scope of use for yen stablecoins could expand into high-value payments.

SBI VC Trade, which handles JPYSC, is also stating on its official website that it will promptly enable JPYSC withdrawals once supervisory confirmation and the整理 of relevant laws and tax practices are completed. This shows that regulatory fixes remain a prerequisite for launching services and expanding distribution.

Key points to watch include the final wording of the agency's request and whether it is reflected in the tax revision outline. In particular, whether simplifying trust-type procedures leads to legislation, and whether it spreads into discussions on easing the 1 million yen per-transaction ceiling applied to the funds-transfer type, are emerging as the next variables for Japan's stablecoin market.