Japan's Financial Services Agency has officially included foreign trust-based stablecoins in its regulatory framework for electronic payment methods, with the amendments set to take effect on June 1.

CoinFeed reported on May 19th that, according to CoinPost, Japan's Financial Services Agency (FSA) announced an amendment to the Cabinet Office Ordinance, formally recognizing foreign trust beneficiary rights, which are "equivalent" to Japan's electronic settlement methods, as electronic settlement methods under the Payment Services Act. The amendment will take effect on June 1st. This revision clarifies two points: first, it establishes a legal basis for eligible foreign trust-based stablecoins to provide services within Japan; second, it stipulates that when handling foreign electronic settlement methods, trading operators should use equivalence to the Japanese system as the eligibility criterion. Simultaneously, related foreign trust beneficiary rights will be excluded from the category of securities under the Financial Instruments and Exchange Act and will be regulated solely as electronic settlement methods. Earlier today, it was reported that Japan's Liberal Democratic Party (LDP) formally approved a "AI + Blockchain Finance" proposal, supporting yen stablecoins and tokenized deposits.