---
type: country
domain: crypto-regulation
status: stable
tags: ["crypto-regulation", "asia_pacific", "fatf", "legal"]
aliases: ["JP", "JPN", "日本"]
created: 2026-08-31
updated: 2026-02-01
compile_into: ["[[country--japan]]"]
sources:
  - name: "Japan Financial Services Agency"
    url: "https://www.fsa.go.jp"
    type: "official"
  - name: "JVCEA"
    url: "https://jvcea.or.jp"
    type: "official"
---

# 🇯🇵 [[country--japan|Japan]] (JP) — Crypto Regulation

> Japan has a clear and comprehensive regulatory framework for cryptocurrencies, primarily governed by the [[concept--payment-services-act|Payment Services Act]] (PSA) as amended in June 2025 and the Financial Instruments and Exchange Act (FIEA). The 2025 amendments introduced new licensing tiers and revised stablecoin reserve requirements, reflecting a mature and evolving regulatory environment.

## Overview

| Field | Value |
|-------|-------|
| Status | Legal |
| Risk Score | 25/100 (Low Risk) |
| Enforcement Level | High |
| Region | [[domain--asia-pacific|asia pacific]] |
| Currency | [[entity--jpy|JPY]] |
| Adoption Rank | #18 |

## Tax

| Type | Rate |
|------|------|
| Capital Gains (Personal) | 20.315% combined income tax and local inhabitant tax on crypto capital gains |
| Capital Gains (Corporate) | Approximately 30% corporate tax on crypto gains |
| VAT on Crypto | No |
| Mining Tax | Mining income taxed as business income under personal or corporate income tax |
| Staking Tax | Taxed as miscellaneous income under personal income tax |
| Airdrop Tax | Taxed as miscellaneous income upon receipt |

Cryptocurrency gains are subject to personal income tax at progressive rates around 20.315% and corporate tax near 30%. VAT does not apply to crypto transactions. Staking rewards, mining income, and airdrops are taxed as miscellaneous or business income accordingly.

## Licensing

| Field | Value |
|-------|-------|
| Required | Yes |
| Regulator | [[entity--fsa|FSA]] |
| Framework | Payment Services Act (PSA) as amended 2025 |
| Ease | medium |
| Cost | $200,000 - $1,000,000 |
| Timeline | 6-12 months |

The 2025 Amendment Act introduced a new ECISBO license tier and updated stablecoin reserve requirements, reflecting enhanced regulatory oversight.

## Licensed VASPs

Registry: [List of Registered Crypto-asset Exchange Service Providers in Japan](https://www.fsa.go.jp/en/regulated/licensed/en_kasoutuka.xlsx) — total: 54

| Name | License Type | Since |
|------|-------------|-------|
| [bitbank, inc.](https://www.fsa.go.jp/en/regulated/licensed/index.html) | Crypto-asset Exchange Service Provider | 2017-09-29 |
| [bitFlyer, Inc.](https://www.fsa.go.jp/en/regulated/licensed/index.html) | Crypto-asset Exchange Service Provider | 2017-09-29 |
| [Coincheck, Inc.](https://www.fsa.go.jp/en/regulated/licensed/index.html) | Crypto-asset Exchange Service Provider | 2019-01-11 |
| [GMO Coin, Inc.](https://www.fsa.go.jp/en/regulated/licensed/index.html) | Crypto-asset Exchange Service Provider | 2017-09-29 |
| [BACKSEAT Exchange Inc.](https://www.fsa.go.jp/en/regulated/licensed/index.html) | Crypto-asset Exchange Service Provider | 2021-04-16 |
| [Binance Japan Inc.](https://www.fsa.go.jp/en/regulated/licensed/index.html) | Crypto-asset Exchange Service Provider | 2022-10-14 |
| [BitTrade Inc.](https://www.fsa.go.jp/en/regulated/licensed/index.html) | Crypto-asset Exchange Service Provider | 2017-09-29 |
| [Btc Box Co., Ltd.](https://www.fsa.go.jp/en/regulated/licensed/index.html) | Crypto-asset Exchange Service Provider | 2017-09-29 |
| [Coinbase  Co., Ltd.](https://www.fsa.go.jp/en/regulated/licensed/index.html) | Crypto-asset Exchange Service Provider | 2021-06-18 |
| [COINHUB, INC.](https://www.fsa.go.jp/en/regulated/licensed/index.html) | Crypto-asset Exchange Service Provider | 2017-12-26 |

## AML / KYC

| Field | Value |
|-------|-------|
| KYC Required | Yes |
| Travel Rule | Yes |
| [[concept--fatf|FATF]] Member | Yes |
| FATF Status | compliant |

## DeFi

**Status:** regulated

DeFi activities fall under existing crypto regulations and licensing requirements, with ongoing monitoring by regulators to ensure compliance with AML and investor protection rules.

## Stablecoins

**Status:** specific_framework

Stablecoins are regulated under the amended Payment Services Act with specific reserve requirements and licensing obligations introduced in 2025.

## NFTs

**Status:** no_rules

NFTs are generally not regulated as crypto assets unless they have payment or investment characteristics. JFSA has indicated that unique, non-fungible digital items typically fall outside the Payment Services Act scope.

## Mining

| Field | Value |
|-------|-------|
| Legal | Yes |
| Electricity Cost | $0.162/kWh |
| Renewable Energy | 22% |
| Climate | temperate |
| Infrastructure | excellent |

Japan has advanced data center infrastructure and reliable internet connectivity, supporting crypto mining operations despite relatively higher electricity costs.

## Geopolitics

| Field | Value |
|-------|-------|
| Stability | very_stable |
| Sanctions | No |
| Corruption Index | 73/100 |
| Ease of Business | easy |
| Internet Freedom | free |
| Banking Access | open |
| Sanctions Programs Active | Yes |

### Recent Political Events

- 2026-06-13: Enactment of the Payment Services Act Amendment 2025 — Strengthened regulatory framework for crypto intermediaries and stablecoins, enhancing market stability and investor protection

## Enforcement

JFSA has issued business improvement orders to registered exchanges for compliance failures. In 2025, JFSA took action against unlicensed overseas exchanges soliciting Japanese users.

## CBDC

| Field | Value |
|-------|-------|
| Status | research |
| Name | Digital Yen |
| Authority | Bank of Japan |
| Type | retail |

## FAQ

### Is cryptocurrency legal in Japan?

Japan has a clear and comprehensive regulatory framework for cryptocurrencies, primarily governed by the Payment Services Act (PSA) as amended in June 2025 and the Financial Instruments and Exchange Act (FIEA). The 2025 amendments introduced new licensing tiers and revised stablecoin reserve requirements, reflecting a mature and evolving regulatory environment.

### What is the FATF status of Japan?

Japan is classified by FATF as: compliant.

### Are VASPs licensed in Japan?

Yes, licensing is required for VASPs.

### What is the AML/KYC regime in Japan?

KYC is mandatory for crypto businesses. Travel rule threshold: all transfers (no minimum).

---

*Data source: [Soken Crypto Legal Map](https://soken.dev/crypto-map/). Last reviewed: 2026-08-31.*

**Sources:**
- [Japan Financial Services Agency](https://www.fsa.go.jp)
- [JVCEA](https://jvcea.or.jp)