Summary: The process of investing in Bitcoin and other cryptocurrencies in Japan has been streamlined thanks to reliable exchanges complying with Financial Services Agency (FSA) regulations. These platforms facilitate swift Yen deposits via domestic bank transfers or credit card transactions, encouraging secure digital asset investment or trading.
Our experts have examined over 15 prominent crypto exchanges throughout Japan, with the goal of guiding you towards the most reputable and compliant options. With an emphasis on FSA compliance and Yen deposit capabilities, we reveal Japan's top 5 cryptocurrency trading platforms:
- Free and instant JPY deposits via Bank Transfer, Credit Card, Line Pay, PayPay & more.
- Trade 400+ Cryptocurrencies with competitively low fees starting from 0.1%.
- Non-KYC exchange with proof-of-reserves that show customer funds are held 1:1.
Top Crypto Platforms in Japan
Our team of specialists has meticulously designed an assessment mechanism to review the leading cryptocurrency platforms in Japan. This evaluation encompasses various elements, including adherence to the Financial Services Agency (FSA) guidelines, historical security performance, degree of transparency (inclusive of audit results), fee structures, distinct attributes, supported cryptocurrencies, and beyond. Proceed with the reading for a thorough examination of these top 5 Japanese exchanges.
1. Bybit
Bybit is our top pick for Japanese investors due to several reasons. The platform prioritizes the privacy of its customers and does not require KYC verification for depositing, trading, or withdrawing funds. This ensures a seamless and hassle-free user experience. Bybit is also transparent in its assets by providing regularly updated proof of reserves.
Its focus on privacy and transparency makes it a top choice for Cryptocurrency traders in Japan and beyond. In addition, it offers a wide range of features which include derivatives trading with up to 100x leverage, Crypto staking, lending and borrowing services, an NFT marketplace, Copy Trading, and much more. To learn more about this exchange visit our detailed Bybit Review.
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2. Uphold
Uphold is considered the second-best platform for Japanese investors as it is the most secure Cryptocurrency exchange in Japan. It is second only to Bybit because it cannot be used in Japanese and only supports credit/debit card deposits. Uphold is a multi-asset exchange that offers trading on over 250 Cryptocurrencies, 5 commodities, and 26 fiat currencies.
It also is one of the few exchanges globally that undergo regular audits to show their proof-of-reserves is 1:1. Uphold offers a variety of other features including a Crypto card that allows users to spend any of the 250 supported tokens on purchases like shopping, paying bills and more. If you would like to learn more about this exchange, visit our detailed Uphold Review.
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3. OKX
OKX is our third-best option for cryptocurrency traders in Japan. OKX prioritizes transparency, and it provides proof of reserves, which ensures users' funds are backed on a 1:1 basis. This promotes the platform's security and strengthens its reputation as a reliable exchange.
After thoroughly analyzing the exchange, our team found that OKX offers a wide range of features that include a mobile app, multiple order types, 24/7 customer support, various staking options, an NFT marketplace, and more. These versatile offerings make it an all-in-one platform for cryptocurrency investors. If you want to learn more about this exchange, visit our OKX Review.
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4. KuCoin
KuCoin is the fourth choice for Japanese traders as it is a Non-KYC Crypto exchange. It is popular for trading altcoins, dog coins and meme coins and supports trading on over 600 Cryptocurrencies. KuCoin offers the widest range of tokens out of any platform on this list.
Our team chose Kucoin because it offers privacy and doesn't require KYC in order to use the platform. However, it is not as secure as the other exchanges featured in this list. Although, it offers a wide range of useful and unique trading features. If you would like to learn more about this platform and its services, visit our KuCoin Review.
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5. bitFlyer
bitFlyer is a Japanese Cryptocurrency exchange and is our fifth-best pick. It is the largest in Japan and is based in Tokyo, Japan. One of the most significant advantages of bitFlyer is its security features. It is fully licensed by the Japanese Financial Services Agency and has never been hacked, making it a trusted and reliable platform for buying and selling Cryptocurrencies.
We thoroughly evaluated the exchange and found that it was easy to use and has a user-friendly interface that makes trading convenient for both beginners and experienced traders. bitFlyer offers its users various features, such as spot, margin, and futures trading, a bitFley Crypto Credit Card, a mobile app, a T-points to Bitcoin convert service and much more.
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Is Crypto Legal in Japan?
Yes, cryptocurrency is legal in Japan. In fact, Japan is known as one of the most crypto-friendly countries in the world. The Japanese government officially recognized Bitcoin and other digital currencies as a form of payment under the Payment Service Act in April 2017. However, they are not considered as "legal tender" and are instead regarded as "property value."
Japan also has strict regulations in place to govern the cryptocurrency market. The Financial Services Agency (FSA), the government agency responsible for overseeing banking, securities, and exchange, mandates all cryptocurrency exchanges in the country to be registered and comply with strict regulations to protect consumers and mitigate risks such as money laundering.
Is Crypto Taxed in Japan?
Cryptocurrency is taxed in Japan. Digital assets are considered as taxable assets under Japanese tax law. Therefore, individuals are required to pay tax on the capital gains they make from selling or trading cryptocurrencies.
Japan employs a progressive tax rate on capital gains from cryptocurrency, ranging from 15% to 55% based on the individual's total income, including those gains. It's important to note that the rates can change, so it's always best to consult with a tax professional or the National Tax Agency's website for the most current information.
Final Thoughts
In conclusion, investing in cryptocurrency in Japan involves a careful selection of a trustworthy and secure exchange. The country's robust regulatory environment ensures exchanges offer a high level of security, compliance, and transparency, providing a safer environment for investors. Among the numerous exchanges vetted, Bybit, Uphold, OKX, KuCoin, and bitFlyer emerge as the top 5, each having their unique strengths.
Bybit excels overall, Uphold is preferred for card transactions, OKX shines for DeFi products, KuCoin is the choice for altcoin trading, and bitFlyer is the top local exchange. It's important to remember that cryptocurrency is legal and taxable in Japan, making it crucial for investors to stay updated on the regulations and taxation guidelines. As the world of cryptocurrency continues to evolve, staying informed and choosing reliable platforms for investment remains paramount.
Dylan Matthews is the Co-Founder and head of operations at Buy Bitcoin Bank, with a background in engineering and experience as a Prop Trader. He has leveraged his knowledge and skills to build and scale the platform, providing users with a seamless experience for buying and selling cryptocurrency.
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