Japanese Duty-Free Partners with UPBOND to Support JPYC Tax Refunds for Visiting Tourists Starting November 1

On October 29, CoinPost stated that Japan Tax-free announced on the same day that its tax refund service, “JapanRefund,” will begin supporting inbound foreign tourists to receive tax refunds in the form of the yen-pegged stablecoin JPYC starting November 1. The wallet infrastructure is powered by UPBOND, with funds transferred via the Avalanche C-Chain. November 1 also marks the implementation of Japan’s switch to the “refund method.” Tourists must first make purchases at tax-included prices. Upon departure, customs will verify that the goods have been exported, after which Japan Tax-free will complete the reconciliation process before issuing the funds directly to the tourists’ wallets. JPYC is pegged 1:1 to the Japanese yen and, under Japan’s Payment Services Act, is classified as an electronic payment instrument rather than a crypto asset.

According to the company, direct wallet transfers can reduce intermediary fees compared to credit cards or international remittances. All disbursement records are stored on-chain, facilitating the prevention of money laundering and fraudulent claims. Merchants also no longer need to handle tourists’ card numbers or account information. Tourists may retain the received JPYC for future consumption during their next visit to Japan, or exchange it on-chain for foreign-pegged stablecoins such as USDC. Processing times, fees, and the final credited amount are subject to the terms of service.