Japan Tax Free and UPBOND, working with @jpyc_official, will let foreign visitors receive tourist tax refunds in the yen-pegged stablecoin $JPYC on the @Avax C-Chain. The service is set to la
Japan Tax Free and UPBOND, working with @jpyc_official, will let foreign visitors receive tourist tax refunds in the yen-pegged stablecoin $JPYC on the @Avax C-Chain. The service is set to launch on November 1, 2026.
Japan Tax Free runs JapanRefund, a service that processes tax refunds for foreign visitors.UPBOND provides the wallet infrastructure, with refunds delivered via the Avalanche C-Chain.
The platform pairs Japan Tax Free's national clearing system with UPBOND's built-in wallet software, so tourists with no cryptocurrency experience can create an account at departure gates. Travelers who already hold a compatible wallet can use it, while those who do not can set one up through UPBOND.
Tourists first buy goods at the tax-inclusive price. On departure, customs verify that the items have left the country, and Japan Tax-free then confirms the transaction and sends the refund to the tourist's wallet.JPYC can be held or converted on-chain to other stablecoins such as USDC.
The launch coincides with a change in national policy. November 1 is also the date Japan's tax-free system moves to a refund method.Japan is shifting to a "refund-upon-departure" model.
On the regulatory side, JPYC is pegged 1:1 to the yen and, under Japan's Fund Settlement Law, is classified as an electronic payment method rather than a crypto asset.Tokyo-based JPYC began issuing what it described as Japan's first legally recognized yen stablecoin in October 2025, after registering with the Financial Services Agency as a fund transfer service provider.All issued tokens are backed by 100% reserves held in yen deposits and government bonds.The token was initially available on the Avalanche, Ethereum and Polygon blockchains.
Backers of the on-chain approach say it can cut costs and delays. The service aims to reduce intermediary fees and enhance transparency. For $AVAX, the rollout is a concrete payments use case for a yen stablecoin, tied to a nationwide change in how tourists claim refunds in Japan.
Sources:
Crypto Briefing: Japan's tourist tax refunds will be paid in JPYC on Avalanche
KuCoin News: Japan Tax-Free partners with UPBOND to offer JPYC refunds
