Japan's Liberal Democratic Party promotes the legalization of cryptocurrency ETFs and the Asian expansion of the Japanese yen stablecoin

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Breaking News from TechFlow. On June 02, according to Cryptopolitan, Japan’s Liberal Democratic Party Blockchain Promotion Group recently submitted a proposal to Finance Minister Kayama Ozuki, calling for the establishment of a legal framework for cryptocurrency ETF trading and for advancing the Japanese yen stablecoin as a payment tool in Asian markets. The proposal notes that cryptocurrency ETFs are easier to manage than directly holding cryptocurrency assets and should receive formal recognition in the Japanese market. Meanwhile, LDP member Junichi Kanda said he hopes to promote the Japanese yen stablecoin policy with the 2027 Asian Development Bank Annual Meeting (hosted in Tokyo). Currently, Japanese startup JPYC launched Japan’s first licensed yen stablecoin in October 2025, and the three major banks—Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho—have also initiated a joint stablecoin experiment. Japan’s Cabinet previously approved reclassifying cryptocurrencies as financial products, laying the groundwork for implementing an ETF framework.
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