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Japan’s Financial Services Agency has asked the government to remove two trustee reporting requirements for trust-type stablecoins as part of its fiscal 2027 tax reform proposals.
The request targets administrative filings rather than taxes owed by stablecoin users. The FSA says existing trust-reporting rules are difficult to apply to payment tokens that can circulate frequently among large numbers of unidentified holders.
FSA Wants Two Trustee Reporting Requirements Removed
Under current inheritance-tax rules, trustees can be required to submit beneficiary reports when a trust takes effect or its beneficiaries change.
Income-tax rules can also require trustees to file trust calculation statements covering beneficiaries and income or expenses attributed to trust property.
The FSA wants both requirements removed when beneficiary interests are used as specified trust-type stablecoins and ownership changes.
Frequent Transfers Make Stablecoin Holder Reporting Impractical
Trust-type stablecoins are structured as beneficiary interests in trusts while functioning as payment instruments designed to track fiat currencies. The FSA said frequent circulation among an unspecified number of users can make it impractical for trustees to identify every holder and track every ownership change.
The regulator also said users are generally not expected to earn income simply from holding the stablecoin, citing that as another reason the existing trust-reporting framework may be unsuitable.
The request forms part of the FSA’s fiscal 2027 tax reform proposals published August 31 and still requires approval through Japan’s tax policy and legislative process.
JPYSC Remains Restricted While Legal and Tax Issues Are Resolved
The proposal comes after SBI Group and Startale launched JPYSC in June, describing it as Japan’s first yen-denominated trust-type stablecoin.
JPYSC is currently limited to SBI VC Trade accounts, with external wallet transfers and public blockchain circulation not yet available. SBI said wider circulation is planned once outstanding legal and tax issues are resolved and regulators have reviewed the structure.
The FSA proposal would remove one administrative reporting burden affecting trust-type stablecoins. It would not exempt stablecoin transactions or income from tax or independently authorize unrestricted public-chain circulation.
