NEWS UPDATE: Japan Reinforces World-Leading Stablecoin Regulatory Framework
NEW YORK CITY — December 12, 2025, 4:00 AM EST
Japan continues to solidify its position at the forefront of digital asset regulation, specifically regarding stablecoins. Building upon legislation that originally took effect in 2023, the government is reinforcing its strict legal framework for these crucial digital currencies in 2025. $AI
The core principle of the law remains unchanged: all stablecoins must be fully backed 1:1 by fiat currency, specifically the Japanese Yen. $DOT
This mandate is a decisive step toward ensuring the stability and trustworthiness of stablecoins, explicitly mitigating the systemic risks associated with unbacked or partially reserved tokens.
Furthermore, the law explicitly restricts issuance rights. $UNI
Only licensed banks or authorized trust companies are permitted to mint stablecoins. This measure integrates stablecoin issuance directly into the existing, regulated financial system, leveraging the security and oversight already in place for traditional banking services. This legal certainty positions stablecoins not as fringe assets, but as a regulated component of the national financial infrastructure. This clarity is instrumental in fostering institutional adoption and consumer confidence within the Japanese market.
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