Japan’s SBI Group’s crypto asset subsidiary, SBI VC Trade, has made history. On March 4, the company registered as the first electronic payment instrument business operator in Japan. This approval enables them to handle stablecoins under Japan’s financial regulations.
First-Ever License to Handle Stablecoins in Japan
SBI VC Trade obtained this registration from the Kanto Regional Financial Bureau, allowing the exchange to support USD Coin (USDC), a stablecoin issued by the US-based company Circle, Inc. The company will begin handling USDC on March 12, starting with a limited beta rollout for its internal group.
Beta Launch Before Full Rollout
SBI VC Trade’s CEO, Tomohiko Kondo, spoke about the beta launch, explaining that the company wants to verify the business flow before moving forward with a full-scale release.
He told CoinDesk JAPAN, “We want to launch it in earnest as soon as possible”
During the beta phase, users will see “USDC” displayed on their trading screens. The company will provide buying, selling, deposits, and withdrawals of USDC for both individual and corporate customers.
To ensure security and stability, SBI VC Trade will maintain an equal or greater amount of US dollars as reserves to back all USDC deposits. Shinsei Trust Bank, a member of the SBI Group, will handle the trust security.
SBI VC Trade Expands Its Services
With this new approval, SBI VC Trade now holds three key licenses, allowing it to operate as a cryptocurrency exchange, a type 1 financial instruments business, and an electronic payment instrument trading business
“Currently, we are the only company that holds all three licenses,” Kondo stated. “We aim to provide services that integrate all three licenses.”
SBI VC Trade plans to introduce trading pairs with USDC, including Bitcoin (BTC/USDC) and Ethereum (ETH/USDC). Additionally, the company is preparing for leveraged trading using USDC soon.
Also Read: Japan’s Govt Cautious on Bitcoin Reserves Amid Uncertainty, Prioritizes Safety and Liquidity
This approval marks a major milestone in Japan’s crypto market. Investors are highly anticipating stablecoins like USDC. While Japan imposes a 1 million yen limit per transaction on overseas stablecoin purchases, experts believe this will be sufficient for most retail investors. Over time, the use of stablecoins in Japan is expected to increase.
Japan Cracks Down on Unregistered Crypto Exchanges
While Japan is welcoming regulated stablecoins, it is also cracking down on unlicensed crypto exchanges. The country’s FSA recently urged Apple and Google to remove five crypto exchange apps, including Bybit, MEXC Global, LBank Exchange, KuCoin, and Bitget Limited. Authorities claim these platforms operated without proper registration under Japan’s Payment Services Act.
Japan’s approach clearly distinguishes between regulated and unregulated crypto services. While companies like SBI VC Trade gain approval, others face strict restrictions for failing to comply with financial laws.
SBI Group’s Strong Crypto Performance
SBI VC Trade is a subsidiary of SBI Holdings, which has been reporting strong financial results in its crypto business. The company recently posted record-breaking profits. With the upcoming USDC listing, SBI aims to solidify its position as a leading crypto exchange in Japan.
The expansion of stablecoins in Japan is a significant industry development, highlighting the government’s willingness to integrate digital assets into the financial system while maintaining strict oversight.
As stablecoin adoption continues to grow, more companies may follow SBI VC Trade’s lead, shaping the future of Japan’s crypto market.