SBI’s Crypto Arm to Support USDC as Japan Eases Stablecoin Regulations

SBI VC Trade, the crypto subsidiary of Japan’s financial giant SBI Holdings, is set to introduce support for Circle’s USDC stablecoin as regulatory barriers ease in the country.

The firm announced on March 4 that it has completed the necessary registration process, allowing it to begin processing USDC transactions.

With full regulatory approval in sight, SBI VC Trade aims to become one of Japan’s first financial platforms to offer trading in USDC.

SBI VC Trade to Begin USDC Trial on March 12 Ahead of Full Rollout

The company plans to launch a trial phase for select users starting March 12, followed by a broader rollout in the near future.

CEO Tomohiko Kondo confirmed the development on social media, stating that SBI VC Trade had received official registration from the Kanto Regional Financial Bureau’s Tokyo office as an electronic payment instrument trading business operator.

“SBI VC Trade has become the first and only company in Japan to obtain a so-called stablecoin license,” Kondo wrote, emphasizing the company’s commitment to fully integrating USDC support.

The move signals a shift in Japan’s stance on stablecoins following regulatory reforms.

The country previously lifted its ban on foreign crypto stablecoins in 2023, paving the way for companies like SBI to expand their offerings.

In February, Japan’s Financial Services Agency (FSA) approved policy recommendations to further relax stablecoin regulations, supporting their role in digital finance.

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【国内初🎉】
「電子決済手段等取引業者」登録完了✨
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当社は、2025年3月4日（火）付けで国内初でステーブルコイン「USDC」の取扱いが可能となる「電子決済手段等取引業者」（登録番号 関東財務局長第00001号）の登録を完了いたしました❗… pic.twitter.com/LxmD2naCsC

— SBI VC Trade (SBI VCトレード） (@sbivc_official) March 4, 2025

On the same day as SBI’s announcement, FSA Commissioner Hideki Ito voiced support for stablecoin adoption, stating at the Fin/Sum 2025 event that stablecoins could enhance financial services by improving remittance and settlement processes.

“Stablecoins are used soundly for the sophistication of remittance and settlement. I hope it will be done,” he noted, according to local news outlet Nikkei.

Beyond Circle, SBI VC Trade and its parent company have established partnerships with major U.S. firms such as Ripple.

The platform already supports a variety of cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and XRP.

Japan to Exempt Crypto Firms from Taxes on Unrealized Gains

Last year, the country’s National Tax Agency also revealed that it has revised its law to exempt crypto token issuers from 30% corporate taxes on unrealized gains, effective from June 20.

At the time, Prime Minister Fumio Kishida said the move was aimed at boosting its blockchain and crypto sectors amid a push for “new capitalism.”

Crypto investors will still be liable to pay a maximum of 55% income tax on any earnings over JPY200,000 ($1,797) related to cryptocurrency, classified as “miscellaneous income.”

However, the approval of this bill hinges on the decision of both chambers of the Japanese parliament, namely the House of Representatives and the House of Councilors.

More recently, the FSA proposed a new amendment to the definition of Article 2 of the Financial Instruments and Exchange Act in a move to provide clarity on the legal nature, operational rules, member responsibilities, ownership, and tax relationships of DAOs.

The proposed amendment aims to grant a specific token called the “Limited Company Type DAO Employee Rights Token” the same treatment as regular limited liability company (LLC) member rights.

By doing so, the FSA intends to ease regulations on employee rights in tokenized LLCs and streamline the operations of DAOs.