Japan’s Liberal Democratic Party Pushes for Cryptocurrency ETF Legalization and Promotion of Yen-Backed Stablecoins in Asia

According to Cryptopolitan, Japan’s Liberal Democratic Party (LDP) Blockchain Promotion Group recently submitted a proposal to Finance Minister Kayoko Shiozawa, calling for the establishment of a legal framework for cryptocurrency ETF trading and promoting the yen-pegged stablecoin as a payment instrument in Asian markets. The proposal states that cryptocurrency ETFs are easier to operate than direct holdings of crypto assets and should receive formal recognition in the Japanese market. Meanwhile, LDP member Junichi Kanda expressed hopes of promoting the yen-pegged stablecoin policy during the 2027 Asian Development Bank Annual Meeting, which will be hosted in Tokyo. Currently, Japanese startup JPYC launched Japan’s first licensed yen-pegged stablecoin in October 2025, while Mitsubishi UFJ Financial Group, Sumitomo Mitsui Banking Corporation, and Mizuho Financial Group have jointly initiated a stablecoin pilot project. Previously, Japan’s Cabinet approved reclassifying cryptocurrencies as financial products, laying the groundwork for implementing the ETF framework.