Japan maintains a clear and comprehensive regulatory framework for cryptocurrencies, primarily governed by the Payment Services Act (PSA) and the Financial Instruments and Exchange Act (FIEA), with a transition to a FIEA-primary framework effective April 2026.
| Status | Legal |
| Risk Score | 25/100 (Low Risk) |
| Region | asia pacific |
| Currency | JPY |
| Capital Gains (Personal) | 15% to 55% progressive income tax on crypto gains |
| Capital Gains (Corporate) | Approximately 30% corporate tax on crypto gains |
| 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 |
Licensing is mandatory for crypto exchanges and service providers, with a transition to a more comprehensive FIEA framework from April 2026.
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 maintains a clear and comprehensive regulatory framework for cryptocurrencies, primarily governed by the Payment Services Act (PSA) and the Financial Instruments and Exchange Act (FIEA), with a transition to a FIEA-primary framework effective April 2026.
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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