On June 1, 2026, Japan’s amended Payment Services Act (PSA) took effect. The reform responds to the digitalization of finance, aiming to protect users while promoting innovation — with major impact on stablecoins and crypto-asset services. This article explains the four pillars of the amendment and the practical steps operators should take.
Background and Overview
The PSA (Act No. 59 of 2009) established a world-first legal framework for electronic payment instruments (stablecoins) in its 2023 amendment. The June 2026 amendment removes the practical bottlenecks of that regime and encourages domestic issuance and circulation of stablecoins.
| Pillar | Content |
|---|---|
| New intermediary business | A "brokerage-only" intermediary business for crypto and electronic payment instruments |
| Flexible trust-type stablecoins | Relaxed management of the backing assets of specified trust beneficiary rights |
| Recognition of foreign stablecoins | Foreign-issued stablecoins with equivalent regulation recognized as electronic payment instruments |
| Domestic holding order | Domestic asset-holding orders for crypto exchanges |
(1) New Intermediary Business
Previously, even operators that merely brokered crypto or stablecoin services generally needed the heavy registration of an exchange or electronic-payment-instrument trading business. The amendment creates a lighter "intermediary business for electronic payment instruments and crypto-asset services" covering brokerage-only activity, lowering entry barriers for fintech firms and platforms.
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Try for free →(2) Flexible Management of Trust-Type Stablecoin Backing Assets
Trust-type stablecoins previously had to hold backing assets in demand deposits, limiting yield. The amendment revises the definition of specified trust beneficiary rights, allowing management in instruments other than demand deposits (e.g., government bonds) under certain conditions. This improves issuer economics and makes domestic issuance practical.
(3) Treatment of Foreign-Issued Stablecoins
The amendment explicitly positions trust beneficiary rights under foreign laws with equivalent regulation as electronic payment instruments under Japanese law. This opens a path for major foreign stablecoins to circulate legally in Japan, benefiting multinational cross-border settlement.
(4) Domestic Asset-Holding Orders and Cross-Border Collection
For user protection, the amendment introduces "domestic asset-holding orders" for crypto exchanges and electronic-payment-instrument traders, reducing the risk of user assets flowing overseas on insolvency. It also clarifies that cross-border collection agency services require money-transfer business registration unless they fall within an exemption, strengthening anti-money-laundering measures.
Practical Steps for Operators
- Re-confirm registration category — determine whether your service is an intermediary, exchange, or electronic-payment-instrument trading business
- Review backing-asset management — trust-type stablecoin issuers should consider the newly permitted management methods
- Audit AML/CFT controls — revisit money-laundering measures and governance in light of cross-border collection and domestic holding orders
Determining registration categories and designing schemes for crypto and stablecoin businesses is best discussed early with a lawyer well versed in financial regulation.
Primary Sources
- Financial Services Agency (FSA): https://www.fsa.go.jp/en/
- e-Gov Law Search — Payment Services Act: https://laws.e-gov.go.jp/law/421AC0000000059
