JPYC Stablecoin Takes Card Rule Concerns to Japan's Fair Trade Commission

JPYC's submission to the Fair Trade Commission

JPYC Co., the issuer of the Japanese yen stablecoin JPYC, confirmed on Friday, October 9 that it submitted information to Japan's Fair Trade Commission on September 14 regarding competitive conditions in the cashless payments market now that stablecoin settlement is entering Japanese retail. The submission was made public together with the company's own position on merchant discounts, and it centers on one question: whether stores that accept JPYC can pass their payment-cost savings on to customers without breaching card-network contracts. The JPYC price is fixed by design at one-to-one parity with the yen, with issuance and redemption set at exactly 1 JPYC per yen. Since issuance began on October 27, 2025, the stablecoin has spread to more than 150 acceptance points across physical stores, mobile vendors and e-commerce sites. Settlement completes through direct value transfer on a blockchain, so the company charges participating merchants no processing fee at all. That zero-fee structure is the source of the dispute. Merchants have begun using the cost difference to fund discounts and free shipping for JPYC-paying customers, and more are weighing the move. Yet the issuer says it has received inquiries from store owners worried that such incentives could violate card merchant rules, and some have held off on implementing them. JPYC's response to those concerns is what pushed the matter to the competition regulator.

Three contract clauses under scrutiny

At the core of the company's argument are three prohibition clauses it says appear widely in credit card merchant agreements: a ban on surcharging card-paying customers, a ban on offering discounts to cash-paying customers, and a ban on recommending or steering customers toward other payment methods. JPYC argues these clauses can restrict a store's ability to set prices by payment method and to tell customers about cheaper options. The company grounds its position in the Fair Trade Commission's own earlier work. Its April 2022 survey report on credit card transactions found that blanket bans on merchant discounts and steering can raise concerns under the Antimonopoly Act where they risk weakening competition between stores for customers, and that constraints from powerful card brands could exclude other payment providers. JPYC reads that reasoning as applying equally to discounts on newer payment rails, including stablecoins, and says returning the savings to customers benefits consumers and encourages healthy competition between payment methods. The issuer stressed that the September 14 submission was not a consultation or complaint about a specific case, and that its published position is its own view, not the commission's. It has opened a consultation desk for merchants hesitant over contract language or pressured by payment providers to stop incentives, and it plans merchant onboarding guides and published case studies. As of August 31, 2026, total JPYC issuance stood at about 7.7 billion yen, with roughly 23,000 account applications, and the company says it maintains AML/CFT controls and KYC screening at the same level as traditional finance. Representative director Noritaka Okabe described JPYC as an open, public infrastructure built without reliance on merchant fees, whose benefits merchants should be free to pass to customers.

Our reading: this filing is an early test of whether merchant agreements written for card rails can be used to slow stablecoin competition in Japan. JPYC is not asking the commission for a ruling; it is building a documented record so merchants have cover when card networks object. The 2022 report already puts the regulator on record that blanket discount bans can raise antitrust questions, which gives JPYC a stronger hook than a startup complaint normally carries. If the commission eventually engages, pricing freedom across Japanese cashless payments widens; until then, merchants still face contract risk on their own.