--- type: country domain: crypto-regulation status: stable tags: ["crypto-regulation", "asia_pacific", "legal"] aliases: ["JP", "JPN", "日本"] created: 2026-06-01 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 established regulatory framework for cryptocurrencies, primarily governed under the [[concept--payment-services-act|Payment Services Act]] (PSA) and the Financial Instruments and Exchange Act (FIEA). The Financial Services Agency (FSA) oversees crypto regulation, ensuring compliance and consumer protection. ## 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) | Currently 15% to 55% progressive miscellaneous income tax (5-45% national + 10% inhabitant). A reform approved in the 2026 Tax Reform Outline (December 2025) will introduce a flat 20.315% separate tax (15% national + 5% inhabitant + 2.1% surtax on national portion) for spot-trading gains on 'specified crypto assets' traded on FSA-registered platforms, but this individual reform is not effective until 1 January 2028. | | Capital Gains (Corporate) | Corporate tax rate of ~23.2% on realised crypto gains. Key update from April 1, 2026: companies holding 'specified crypto assets' long-term are no longer required to pay mark-to-market tax on unrealised gains at year-end. Previously, all corporate crypto holdings were taxed on year-end fair-market-value changes. This significantly improves the corporate holding environment. | | VAT on Crypto | No | | Mining Tax | Taxed as business income under corporate or personal income tax depending on entity | | Staking Tax | Taxed as miscellaneous income | | Airdrop Tax | Taxed as miscellaneous income | Cryptocurrency gains are taxed as income with progressive rates for individuals and corporate tax for companies. VAT does not apply to crypto transactions. Staking and airdrops are taxed as miscellaneous income, while mining income is treated as business income. ## Licensing | Field | Value | |-------|-------| | Required | Yes | | Regulator | [[entity--fsa|FSA]] | | Framework | Payment Services Act (PSA) as amended by the June 2025 Amendment Act (全面施行 13 June 2026) and Financial Instruments and Exchange Act (FIEA). The 2025 Amendment Act adds the Electronic Payment Instrument and Crypto Asset Intermediary Service Business (ECISBO) licence tier and revises stablecoin/EPI reserve requirements. | | Ease | medium | | Cost | $200,000 - $1,000,000 | | Timeline | 6-12 months | Crypto exchanges and service providers must register with the Financial Services Agency (FSA) and comply with AML/KYC regulations under PSA and FIEA. ## 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: 56 | 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 | | [BITPOINT JAPAN CO., LTD.](https://www.fsa.go.jp/en/regulated/licensed/index.html) | Crypto-asset Exchange Service Provider | 2017-09-29 | | [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 | ## AML / KYC | Field | Value | |-------|-------| | KYC Required | — | | Travel Rule | — | | FATF Member | — | ## DeFi **Status:** regulated DeFi activities fall under existing financial regulations and are subject to oversight by the FSA, requiring compliance with AML and licensing rules. ## Stablecoins **Status:** Unknown ## 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 | good | Mining is legal and regulated; electricity costs are relatively high compared to global averages. Infrastructure supports mining but is not a major global mining hub. ## Geopolitics | Field | Value | |-------|-------| | Stability | stable | | Sanctions | No | | Corruption Index | 73/100 | | Ease of Business | easy | | Internet Freedom | free | | Banking Access | open | | Sanctions Programs Active | Yes | ### Recent Political Events - 2025-11-01: FSA updated crypto licensing guidelines to enhance consumer protection — Strengthened regulatory clarity and compliance requirements for crypto businesses ## 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 established regulatory framework for cryptocurrencies, primarily governed under the Payment Services Act (PSA) and the Financial Instruments and Exchange Act (FIEA). The Financial Services Agency (FSA) oversees crypto regulation, ensuring compliance and consumer protection. ### Are VASPs licensed in Japan? Yes, licensing is required for VASPs. --- *Data source: [Soken Crypto Legal Map](https://soken.dev/crypto-map/). Last reviewed: 2026-06-01.* **Sources:** - [Japan Financial Services Agency](https://www.fsa.go.jp) - [JVCEA](https://jvcea.or.jp)