Japan's Financial Services Agency (FSA) recently put forward some ideas on cryptocurrencies and stablecoins to the Financial System Commission's Payment Services Working Group, mentioning reluctance to allow banks other than trust banks to issue stablecoins. For stablecoins issued by trust banks, the FSA wants to relax the current reserve requirement that all assets must be held in the form of bank demand deposits. However, the FSA also wants to implement travel rules that require KYC for transfers of stablecoins issued by trust banks. Japan passed stablecoin legislation in 2022, enabling banks, licensed money transfer companies, and trust companies to issue stablecoins. As part of its working group presentation, the FSA distinguished between stablecoins issued on permissioned blockchains and those issued on public blockchains. It is satisfied that all three stablecoins exist on permissioned chains, but is cautious about allowing licensed depository institutions to issue stablecoins on non-permissioned chains.