Gate News message, April 28 — Japan's Financial Services Agency (FSA) has officially classified JPYC, the country's first JPY stablecoin issuer, as a "payment service provider" in its official publication Access FSA. JPYC will now operate under the same legal framework as PayPay, Rakuten Pay, and other payment services.
According to FSA officials, the classification is based on the economic function of stablecoin transactions: users send 1 million JPY to JPYC in exchange for equivalent stablecoins, which then circulate in the market until holders redeem them back to JPY. This process constitutes "money transfer" under Japanese law. As a payment service provider, JPYC is required to maintain user deposits at 100% or above, ensuring that user funds can be fully returned even in the event of the company's bankruptcy.
The FSA noted that payment services have become essential national infrastructure. The agency operates a Fintech support window and experimental platform to assist new service providers in their development and compliance efforts.
