Blockchain Enthusiasts Annual Conference | SBI Discusses the Implementation of Japanese Stablecoins with Osaka Stock Exchange: Compliance and Regulatory Requirements Become Key

During a panel at the 10th Blockchain Enthusiasts Annual Conference, executives from SBI Group and Osaka Digital Exchange (ODX) shared their experiences on how Japan has gradually advanced cross-border payments, transaction clearing, and tokenization of assets under the triple pressures of strict regulations, investor protection, and financial innovation after the legalization of stablecoins, revealing Japan's positioning and future opportunities in the global stablecoin competition.

Legislation First: Japan Leads Asia's Stablecoin Framework

In June 2023, the amendment to Japan's "Payment Services Act (PSA)" officially came into effect, laying the foundation for the regulation of local stablecoins. The regulations detailed the definition of stablecoins and required that issuers must be banks, trusts, or token registration businesses, and must ensure that assets are fully backed.

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Masashi Okuyama, Director and Legal Officer of SBI Digital Asset Holdings, pointed out that although this system is strict, it lays a clear legal foundation for the market. The Financial Services Agency ( FSA ) and the then-ruling Liberal Democratic Party's proactive attitude towards regulation further reflects Japan's desire to establish a foothold in the digital finance sector.

However, he also admitted that the attitudes of different departments vary, creating dual challenges in regulation. Market participants must communicate and coordinate one by one in order to promote the rollout of new products.

Securities firms attempt payment and settlement: Cross-border demand drives stablecoin applications

In payment and settlement scenarios, stablecoins are seen as key to solving the efficiency of cross-border transactions. Okuyama reviews the early experiences of Ripple (XRP) in cross-border payments, pointing out that due to high volatility, the demand for stablecoins has emerged. However, the purchasing of stablecoins by the Japanese public is still hindered by limitations such as caps and thresholds, obstructing larger-scale applications.

Kimio Mikazuki, the representative director and president of Osaka Digital Exchange, revealed that they are currently testing clearing through a private blockchain (private blockchain), but their long-term goal is still to connect with a public blockchain (public blockchain) in order to link with the global capital market, indicating that Japan is in a transitional stage of "regulatory first, innovation later."

USDC Introduces Japan: The Hardships and Necessities of Compliance

The SBI Group successfully introduced the USDC stablecoin into the Japanese market, but faced strict regulatory challenges during the process. These include concerns and pressures from regulatory agencies regarding the lack of direct control over offshore issued stablecoins, as well as requirements for local intermediaries to invest additional reserve funds to ensure the safety of investors' assets.

Okuyama stated that this "dual protection" has increased compliance costs, but at the same time, it has made Japan one of the few markets in the world to incorporate internationally circulating stablecoins into its legal framework. He emphasized that it is precisely because of the clear regulations that market participants can confidently advance innovation and lay the foundation for international cooperation.

(FinTechOn｜SBI Technical Director: Accounting standards are unclear, making it difficult for stablecoins to be adopted in enterprise applications)

Challenges for Financial Institutions: Balancing Compliance and Innovation

For traditional securities firms and exchanges, the introduction of stablecoins not only involves regulatory scrutiny but also challenges in accounting and financial handling.

Mikazuki revealed that it currently adopts the "brokerage model (", indirectly participating in the market as an intermediary; in the future, it plans to introduce the "broker node )", allowing trading matching, clearing, and settlement to be completed on-chain simultaneously, improving efficiency and shortening time.

( Japan welcomes the era of digital finance: Japan Post Bank will launch DCJPY deposit tokens as early as 2026 )

In giving advice to cryptocurrency startups, he emphasized that Japanese financial institutions need to align more with regulations when promoting innovation. Therefore, in addition to technology, a strong legal and compliance team is also key to whether the product can be implemented.

Stablecoins reshape the global financial order, setting strict standards for sustainable development.

The three participants expressed at the end of the discussion that in the future, stablecoins and tokenized assets may become the new standard of the global economy, similar to paper money or gold coins. What seems like strict regulations today is actually aimed at providing a more trustworthy foundation for the market's long-term development.

With the rise of cross-border payments and decentralized finance (DeFi) applications, Japan's rigorous and orderly regulatory model is expected to serve as a global reference. Among them, whether industry players can find a balance between compliance and innovation will be one of the key factors determining whether Japan can maintain its leading position in the international stablecoin arena.

This article Blockchain Enthusiasts Annual Conference | SBI discusses the implementation of Japanese stablecoins with the Osaka Stock Exchange: compliance and regulation become key. First appeared in Chain News ABMedia.