Japan is reclassifying certain cryptocurrencies to align them with their legal framework, which may facilitate the approval of cryptocurrency exchange-traded funds (ETFs) in the country. Additionally, there is a proposed shift in tax regulations that could impact crypto investments, making the environment more favorable for both investors and companies in the crypto sector.

Japanese startup JPYC has announced plans to issue the first stablecoin pegged to the yen, named "JPYC," after receiving official licensing. The stablecoin will be fully convertible to yen and backed by domestic savings and Japanese government bonds, with initial demand expected from institutional investors in Japan and future aspirations for international use.