Japan Tax Free, JPYC, and UPBOND are collaborating on a new system to issue consumption tax refunds to foreign tourists. The platform will utilize the Avalanche C-Chain network to process these payments directly to digital wallets.
The service is scheduled for launch on November 1, 2026. It coincides with Japan's transition to a refund-upon-departure model, where tourists pay full price at the point of sale and receive tax reimbursements only after customs verification upon leaving the country.
UPBOND will manage the creation of digital wallets for travelers who do not already possess a compatible one. The system aims to increase operational efficiency, reduce intermediary fees, and ensure compliance with anti-money laundering regulations through on-chain record-keeping.
JPYC is officially classified as an electronic payment instrument under the Japanese Payment Services Act. This legal status allows mainstream operators to integrate the asset into financial services while adhering to local regulatory requirements.
The partnership between Japan Tax Free and UPBOND was formally established on March 3, 2026. This initiative aligns with broader government efforts to explore blockchain technology for public and financial operations.
