In a significant development for Japan’s crypto market, SBI VC Trade has become the first Japanese company to receive a license for stablecoins, marking a crucial milestone in the country’s crypto regulation. This breakthrough allows the company to initiate operations with Circle’s USDC, paving the way for further adoption of digital assets in the country.
Key aspects of this development include:
- SBI VC Trade has obtained official registration to operate with the USDC stablecoin in Japan, a move that positions the company as a pioneer in the country’s digital finance space.
- The Japanese government has relaxed regulations on stablecoins, enabling their integration into the country’s financial system and signaling a more favorable environment for crypto assets.
- Japan is actively working to incentivize growth in the crypto sector through tax breaks and regulatory reforms, aiming to stimulate innovation and investment in the industry.
The Japanese crypto market is on the cusp of a new era with the adoption of stablecoins. SBI VC Trade, a subsidiary of SBI Holdings, has received approval to operate with USD Coin (USDC), Circle’s stablecoin, in a context of increasingly favorable regulations. This move marks a significant step towards the adoption of USDC in Japan, with SBI VC Trade announcing that it has completed the necessary registration process to support the stablecoin.
The launch will include an exclusive testing phase for selected users on March 12, followed by a broader implementation in the near future. Tomohiko Kondo, CEO of SBI VC Trade, confirmed on social media that the company has been registered by the Kanto Financial Bureau as an electronic payment instrument operator. Meanwhile, Circle’s USDC has been expanding internationally, with regulatory approvals for commercial operations in Europe, in line with the new crypto-asset market (MiCA) law that came into effect at the end of 2024.
This progress occurs amidst regulatory reforms in Japan. In 2023, the country lifted its ban on foreign stablecoins, opening the door to their adoption in financial markets. In February 2024, the Financial Services Agency (FSA) approved new policy recommendations to further relax stablecoin regulations. FSA Commissioner Hideki Ito publicly supported this decision during the Fin/Sum 2025 event, highlighting the potential of these digital currencies to improve remittance and payment processes.
Hideki Ito emphasized, “Stablecoins can significantly improve efficiency in remittances and settlements. I hope their adoption will take place in an orderly manner.” This stance reflects Japan’s evolving approach to crypto assets, with a focus on creating a more regulated and accessible ecosystem.
SBI VC Trade and its parent company have established strategic partnerships with US firms, such as Ripple. The platform already supports Bitcoin (BTC), Ethereum (ETH), and XRP, reinforcing its commitment to innovation in the digital financial ecosystem. The integration of USDC not only expands the range of digital assets available in Japan but also positions SBI VC Trade as a key player in the country’s transition to a more regulated and accessible crypto ecosystem.
In an effort to strengthen its blockchain industry, Japan has also adjusted its tax framework. In 2023, the National Tax Agency modified its regulations to exempt token issuers from paying the 30% corporate tax on unrealized gains. Prime Minister Fumio Kishida supported this measure as part of his “new capitalism” initiative, aimed at encouraging innovation in the digital financial sector.
However, investors still need to pay up to 55% in taxes on income exceeding JPY 200,000 (USD $1,797) derived from cryptocurrencies. Furthermore, the proposal still needs to be approved by both houses of the Japanese Parliament.
The regulation of Decentralized Autonomous Organizations (DAOs) is also on the legislative agenda. Recently, the FSA proposed an amendment to the Financial Instruments and Exchange Law to clearly define the legal status of DAOs. The change aims to grant certain DAO tokens the same legal classification as shares in a Limited Liability Company (LLC), potentially facilitating the regulation of labor rights in tokenized companies and optimizing the management of these decentralized models.
With these reforms, Japan is moving towards a more favorable environment for the integration of cryptocurrencies into its financial system, solidifying its position as one of the most innovative markets in Asia.
Edited by Angel Di Matteo / Blaze Trends
Original image created by Blaze Trends using artificial intelligence, licensed under Public Domain.
WARNING: This is an informative article. Blaze Trends is a media outlet and does not promote, support, or recommend any particular investment. It’s worth noting that crypto investments are not regulated in some countries and may not be suitable for retail investors, as the total amount invested could be lost. Please consult the laws of your country before investing.
