Japan regulates crypto-asset exchange service providers under the Payment Services Act, with registration at the FSA. On 15 July 2026 the Diet enacted the amendment to the Financial Instruments and Exchange Act and the Payment Services Act (Cabinet Bill No. 57) that moves crypto-asset trading into the FIEA and introduces crypto insider trading rules; the core crypto provisions take effect on a date set by Cabinet Order within one year of promulgation.
| Status | Legal |
| Risk Score | 25/100 (Low Risk) |
| Region | asia pacific |
| Currency | JPY |
| Capital Gains (Personal) | Miscellaneous income taxed at progressive rates up to 55% (national up to 45% plus 2.1% surtax, plus 10% local inhabitant tax); a separate flat 20.315% rate for specified crypto-assets is legislated but applies only from 1 January of the year after the amended FIEA takes effect |
| Capital Gains (Corporate) | Taxed as ordinary corporate income; 23.2% national CIT, about 30% effective combined rate with local taxes |
| VAT on Crypto | No |
| Staking Tax | Taxed as miscellaneous income |
| Airdrop Tax | Taxed as miscellaneous income |
Crypto gains are taxed under progressive income tax for individuals and corporate tax for businesses. VAT does not apply to crypto transactions. Staking and airdrops are taxed as miscellaneous income, mining income as business income.
| Required | Yes |
| Regulator | FSA (Financial Services Agency) / JVCEA (Japan Virtual and Crypto Assets Exchange Association) |
| Framework | Payment Services Act (PSA) and Financial Instruments and Exchange Act (FIEA) |
| Ease | medium |
Crypto-asset exchange service providers must register with the FSA under the Payment Services Act. The 2026 FIEA amendment (enacted 15 July 2026) will move this activity to the FIEA once its crypto provisions take effect by Cabinet Order, expected in 2027.
Enforcement focused on unlicensed operators and consumer protection
| KYC Required | Yes |
| Travel Rule | Yes |
| FATF Member | Yes |
| FATF Status | compliant |
| FATF Body | FATF |
| Suspicious-Activity Reporting | Yes |
Status: regulated
DeFi activities are subject to existing financial regulations under the FIEA and PSA, requiring compliance with AML/KYC and licensing where applicable.
Status: regulated
Stablecoins are regulated under the PSA and FIEA frameworks, requiring issuers and service providers to comply with licensing and AML obligations.
Status: no_rules
No specific NFT regulation
| Legal | Yes |
| Electricity Cost | $0.12/kWh |
| Renewable Energy | 15% |
| Infrastructure | excellent |
Mining is legal with moderate electricity costs and good infrastructure; renewable energy share is moderate.
| Stability | very_stable |
| Sanctions | No |
| Corruption Index | 73/100 |
| Banking Access | open |
| Sanctions Program Active | Yes |
Risk Factors
Japan is politically stable with strong regulatory institutions, no international sanctions, high internet freedom, and open banking access. Key risks include natural disasters such as earthquakes and tsunamis.
Recent Political Events
Japan regulates crypto-asset exchange service providers under the Payment Services Act, with registration at the FSA. On 15 July 2026 the Diet enacted the amendment to the Financial Instruments and Exchange Act and the Payment Services Act (Cabinet Bill No. 57) that moves crypto-asset trading into the FIEA and introduces crypto insider trading rules; the core crypto provisions take effect on a date set by Cabinet Order within one year of promulgation.
Tokyo is classified by FATF as: compliant.
Yes, licensing is required for VASPs.
KYC is mandatory for crypto businesses.
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Explore IT Services →Last reviewed: 2026-09-29 · Data source: Soken Crypto Legal Map
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