Japan’s JPYC Reaches Only a Quarter of Its First-Year Goal as Canada Keeps Its Stablecoin Yield Ban and South Korea Weighs a Crypto Tax Delay

Three policy stories from Asia and North America show how rules shape stablecoin and crypto growth.

In Japan, the yen stablecoin JPYC ended its first year well short of its target. Circulation was 3.2 billion yen, about $20 million, on October 23, against cumulative issuance of 12.1 billion yen, according to Nikkei as cited by CoinDesk. The gap reflects redeemed tokens. Circulation briefly topped 4.2 billion yen in September after South Korea’s Upbit listed JPYC, then fell back to around 3 billion yen. CEO Okabe told NADA NEWS, “Frankly, I don’t think it’s growing,” and blamed the shortfall partly on a 1 million yen issuance limit tied to Japan’s Type II funds-transfer rules. JPYC is backed by bank deposits and Japanese government bonds, so lower circulation means less interest income. Okabe wants circulation in the tens of billions of yen in year two, roughly tenfold, and Japan’s Financial Services Agency expects a stablecoin roadmap in early 2027.

In Canada, the government opened a 60-day consultation on draft stablecoin regulations, closing December 23, CoinDesk reported. The draft keeps the ban on issuers paying interest, including through third parties, while rewards tied to transactions remain allowed. Non-bank issuers must hold reserves equal to circulating tokens at qualified Canadian institutions, customers must be able to redeem within three business days, and redemption fees are capped at 1%. The framework is expected to take effect toward the end of 2027. The Canadian Bankers Association “firmly supports” the yield ban, while Coinbase Canada has permission from the Ontario Securities Commission to offer yields on eligible tokens, with risk warnings.

In South Korea, a 22% tax on crypto gains above 2.5 million won is scheduled to start on January 1, 2027, after three postponements. A bill introduced on October 16 by Democratic Party lawmaker Park Min-gyu would start taxation on January 1 of the second year after Korea first exchanges crypto data under the OECD’s CARF framework, which would mean 2029 if that exchange happens in 2027. Blockhead reported that the government’s official position is still that the tax starts on schedule, and any delay requires the National Assembly to amend the Income Tax Act before January 1, 2027. This is news, not investment advice.

Track the market yourself with AiTraderView’s free tools: Crypto Cockpit for charts and 75+ indicators, Crypto Screener to find setups, and Crypto Portfolio to follow your holdings.

Sources:

• CoinDesk: Japan’s top yen stablecoin falls short of its target in a disappointing first year
• CoinDesk: Canada opens consultation on draft stablecoin rules, maintains ban on yields
• Blockhead: South Korea meets top crypto exchanges as ruling party bill seeks to push 22% tax to 2029