Japan’s Financial Services Agency (FSA) is advancing an amendment to the Cabinet Office Ordinance under the Payment Services Act, formally placing foreign-issued fiat-backed stablecoins such as USDT and USDC under the “Electronic Payment Instruments (電子決済手段)” category. According to CoinPost, this amendment continues the FSA’s phased approach since the stablecoin legal framework took effect in June 2023: first establish the new legal category of “Electronic Payment Instruments,” then use Cabinet Office Ordinances, supervisory guidelines, and licensed operators to progressively open a domestic circulation pathway for foreign stablecoins. Prior to this amendment, USDT was not on any legally permissible circulation list in Japan — that is the core change.
Most readers come to usdtcard.net with one question: will the USDT card in their wallet still work tomorrow? Our assessment is that the overwhelming majority of overseas-issued cardholders face no immediate change, but users residing in Japan or living there long-term need to understand the situation by scenario.
Which USDT Card Users Are Directly Affected
Let’s break down the scenarios clearly. The FSA’s regulatory scope covers “operators providing stablecoin trading, exchange, and custody services within Japan” — not individual users, and not overseas card networks.
- Users with overseas-issued cards, overseas accounts, and overseas residency: This amendment has essentially no impact. Whether it is MPCard Asia Elite, an Asia-Pacific virtual Visa, or Bybit Card, the issuing entities fall outside the scope of Japanese licensing.
- Japan residents using overseas-issued USDT cards: Continued use remains lawful, but if you want to convert JPY to USDT domestically to top up your card in the future, the pathway will shift from a “grey-zone direct purchase” to a “licensed operator intermediary.” Fee structures may change, and KYC requirements will become more granular.
- Japan residents planning to apply for a new card: Consider waiting 30–60 days to observe which issuers proactively adapt to a Japan-compliant pathway and which choose not to enter the Japanese market. Whether MPCard’s Asia Business — coming soon will offer a JPY top-up channel has not been officially announced.
If you only use overseas credit or debit cards and have no need for domestic JPY → USDT conversion, you do not need to take any action within the 7-day, 30-day, or 90-day windows.
How This Amendment Relates to the 2023 Legal Framework
Many readers are misreading this news as “Japan has just started allowing USDT.” That is not accurate. Here is the timeline restored:
| Date | Event | Nature |
|---|---|---|
| June 2022 | Diet passes amendment to the Payment Services Act, establishing the “Electronic Payment Instruments” concept | Legislative |
| June 2023 | Amendment enters into force | Framework activated |
| 2023–2025 | Domestically issued JPY stablecoins (e.g. the JPYC ecosystem) pilot first | Domestic priority |
| This update (May 2026) | Cabinet Office Ordinance amended to clarify the Electronic Payment Instruments status of foreign-issued stablecoins | Foreign stablecoins enter |
In other words, Japan has followed a three-step path: “establish the framework → open to domestic issuers → open to foreign issuers.” This bears a resemblance to the EU’s MiCAR approach (first establish EMT/ART classifications, then review issuers individually), but Japan places greater emphasis on using licensed “Electronic Payment Instruments trading operators” as an intermediary layer to absorb risk, rather than licensing issuers directly.
The closest historical analogy is Hong Kong’s stablecoin ordinance process in 2024–2025 — similarly, licensing local issuers first before addressing cross-border circulation. The key difference from Western approaches is that Japan does not intend to let USDT circulate “bare”; it requires a licensed operator as an intermediary layer.
Legal Boundaries: Explicitly Permitted vs. Grey Area vs. Prohibited
After the amendment, the boundaries for stablecoin use within Japan are roughly as follows:
- Explicitly permitted: Buying, selling, exchanging, and custodying foreign stablecoins through operators that obtain an “Electronic Payment Instruments, etc. Trading Business” licence in the future.
- Still a grey area: On-chain transfers between individuals, self-directed trading on overseas exchanges, and domestic spending on overseas-issued USDT cards. This amendment does not explicitly prohibit these activities, but it also does not provide clear regulatory protection at the operator level.
- Explicitly prohibited: Unlicensed operators providing stablecoin trading intermediation or JPY on-ramp services within Japan.
For a more detailed compliance framework, refer to our Japan Compliance Guide (covering FSA, JVCEA, and NTA positions). It is important to note: the FSA has not yet published the first list of licensed foreign stablecoin trading operators, and the official timeline only states “applications will be accepted after the amendment takes effect” — there is no specific milestone such as “published in July.” Any such timing predictions are market speculation.
Key Milestones Worth Watching
We recommend readers focus on events that will produce official documents, rather than social media speculation:
- The effective date of the Cabinet Office Ordinance: The date published in the Official Gazette (官報) is authoritative. The FSA has not yet issued a detailed effective-date notice.
- The first list of licensed “Electronic Payment Instruments, etc. Trading Business” operators: The FSA typically updates its “List of Licensed/Registered Operators” on its official website. Monitor the FSA policy page.
- Official responses from major issuers (Tether, Circle): Whether they proactively cooperate with Japanese licensed operators will determine whether USDT actually appears on compliant Japanese exchanges.
- Announcements from domestic exchanges: Whether bitFlyer, Coincheck, bitbank, and others apply for new licences and whether they list USDT/USDC.
For a comparison of overseas issuers’ compliance strategies across Asia-Pacific, see Top 5 Asia-Pacific USDT Cards 2026 and the Virtual Card Selection Guide.
Editorial Recommendations
Recommendations broken down by user type, so you can find your situation directly:
- Non-Japan residents holding MPCard Asia Elite or other overseas-issued cards: No action required. This amendment has no direct bearing on your card.
- Japan residents already using overseas USDT cards: Continue using your card, but avoid using unlicensed operators for JPY → USDT conversion. Wait for the licensed operator list to be published before deciding on a domestic top-up pathway.
- Japan residents evaluating a new card application: Consider waiting 30–60 days to see which issuers publicly commit to a Japan-compliant pathway. Applying immediately will not give you a “head start” — you may simply need to resubmit documentation after regulations are finalised.
- Corporate / cross-border settlement users: If you use MPCard Global Business for cross-border settlement, check whether your company is registered in Japan — Japanese-registered entities will need to wait for supervisory guideline details.
A final note: this news represents a framework-level development, not a completed licensing process. Until the FSA publishes the first list of licensed operators, any market claims such as “USDT is about to launch on Exchange X” or “JPY top-up channel opens next month” have no official basis. Wait for the Official Gazette.