Japan's Upbond to offer tax-free shopping refunds in JPYC stablecoin

Key facts

• Upbond's system allows foreign tourists to receive tax-free shopping refunds in JPYC stablecoin.
• Refunds will be processed on the Avalanche C-Chain.
• The new system aligns with Japan's shift to a "refund-upon-departure" model for tax-free shopping.
• JPYC is classified as an electronic payment method in Japan.
• The service is set to launch on November 1, 2026.

Japanese technology company Upbond has launched an electronic wallet system that will enable foreign tourists to receive refunds from tax-free shopping in JPYC, a stablecoin pegged to the Japanese yen. The service, developed in partnership with Japan Tax Free and JPYC, is set to begin on November 1, 2026. All refund transactions will be settled on the Avalanche C-Chain. This initiative aligns with Japan's new "refund-upon-departure" model for tax-free shopping, which replaces previous exemption methods. Under the new rules, tourists pay the full price, including tax, at the point of sale and receive the tax refund after customs verifies their purchases upon departure. The JPYC system aims to increase efficiency, reduce intermediary fees, and enhance compliance with anti-money laundering regulations, leveraging the permanent record of blockchain transactions. JPYC is officially recognized as an electronic payment instrument in Japan, facilitating its use in mainstream financial operations.