Japan was one of the first countries to regulate cryptocurrency, and it remains one of the most structured markets in the world. Foreigners can legally buy and trade crypto in Japan — with clear rules and significant tax obligations.
Is Cryptocurrency Legal in Japan?
Yes. Japan recognizes crypto assets as legal property under the Payment Services Act (資金決済法). The Financial Services Agency (FSA / 金融庁) licenses all legitimate exchanges.
Japan was actually the first major country to regulate cryptocurrency trading, following the Mt. Gox collapse in 2014.
Registered Exchanges in Japan
Only FSA-registered exchanges can legally operate. Major options for foreigners:
| Exchange | English Support | Coins Available | Notes |
|---|---|---|---|
| Coincheck (コインチェック) | Partial | 30+ | Most users, beginner-friendly |
| bitFlyer (ビットフライヤー) | Partial | 20+ | High volume, reliable |
| GMO Coin | Partial | 25+ | Good fees |
| Bybit Japan | Good | Many | Derivatives available |
| SBI VC Trade | Limited | 20+ | Backed by SBI Group |
Registration Requirements
Most exchanges require:
- Japanese residence card (在留カード)
- My Number card or My Number notification slip
- Japanese phone number
- Japanese bank account (for fiat deposits/withdrawals)
Can Foreigners Open an Account?
Generally yes, if you have:
- Valid Japanese residency (any status)
- A registered address in Japan
- Japanese bank account
Short-term tourists and people without residency will struggle to open accounts on Japanese exchanges.
Crypto Taxes in Japan
This is the most important section. Japan’s crypto tax treatment is among the most aggressive in the world.
How Crypto Profits Are Taxed
Crypto gains in Japan are classified as 雑所得 (Miscellaneous Income) — taxed at your marginal income tax rate, not a flat capital gains rate.
| Total Income | Tax Rate (National + Local) |
|---|---|
| Under ¥1.95 million | ~15% |
| ¥1.95M – ¥3.3M | ~20% |
| ¥3.3M – ¥6.95M | ~30% |
| ¥6.95M – ¥9M | ~33% |
| ¥9M – ¥18M | ~43% |
| Over ¥18M | ~55% |
Taxable Events
- Selling crypto for yen
- Trading one crypto for another (e.g., BTC → ETH)
- Using crypto to buy goods/services
- Receiving crypto as income or mining rewards
NOT Taxable
- Buying crypto with yen — no tax event
- Transferring between your own wallets
- Holding crypto — no capital gains tax on unrealized gains
Loss Carryforward
Unlike stocks (NISA/特定口座), crypto losses cannot be carried forward to offset future gains. This is a significant disadvantage vs. stock investing.
Reporting Crypto Taxes
You must report crypto income in your 確定申告 (Kakutei Shinkoku) annual tax filing (due March 15).
Records to keep:
- Every trade (date, amount, price in JPY)
- Every purchase
- Exchange statements (most Japanese exchanges provide CSV exports)
Tools for crypto tax calculation:
- Cryptact (クリプタクト) — most popular in Japan; supports all major exchanges
- Gtax — alternative crypto tax tool
DeFi and NFTs
The FSA has been tightening rules on DeFi and NFTs, but as of 2025:
- DeFi income (yield, liquidity mining, staking rewards) — taxable as miscellaneous income when received
- NFT sales — taxable as miscellaneous income on gains
- NFT minting income — taxable
Rules are evolving rapidly. Consult a tax professional if you have significant DeFi activity.
Should You Use a Foreign Exchange?
Using unregistered foreign exchanges (Binance international, etc.) carries risks:
- Not licensed in Japan — violates regulations if accessed from Japan
- No yen deposit/withdrawal via Japanese banks
- Tax obligations remain the same — you must still report gains
- Enforcement is increasing
The FSA has issued warnings and blocked some foreign platforms.
Crypto Tax Tips for Foreigners
- Keep records from day one — every transaction, even small ones
- Use Cryptact or Gtax — do not try to calculate manually
- Consider NISA for stock investing instead — more favorable tax treatment (0% within NISA limits)
- If gains are large, consult a tax accountant (税理士) who handles crypto
- Don’t assume your home country’s rules apply — they don’t while you’re resident in Japan