Summary: Japan's engagement with digital currencies like Bitcoin, stablecoins, and other cryptocurrencies has surged, fueled by the establishment of exchanges that align with Japan's Financial Services Agency (FSA) regulations. These platforms offer straightforward registration processes and a variety of trading options. They rigorously follow Japanese financial laws, guaranteeing a safe trading space.
Our comprehensive analysis highlights the top 5 cryptocurrency exchanges in Japan. Each platform stands out for its commitment to security and compliance, range of supported cryptocurrencies, clear pricing models, customer assistance, and unique attributes.
- Free and instant JPY deposits via Bank Transfer, Credit Card, Line Pay, PayPay & more.
- Trade 1000+ Cryptocurrencies with competitively low fees starting from 0.1%.
- Proof-of-reserves that show customer funds are held on a 1:1 basis.
Best Crypto Exchanges in Japan
Our team has developed a meticulous evaluation method to pinpoint the premier cryptocurrency exchanges for Japanese investors. This review considers factors such as compliance with Japan's Financial Services Agency regulations, local language support, pricing structure, platform functionality, and the range of cryptocurrencies. Following our thorough assessment, we've identified the leading 5 digital asset trading platforms in Japan.
1. Bybit
Bybit is our top pick for Japanese investors due to several reasons. Firstly, it provides access to over 1000 digital assets that can be traded on spot, derivatives, and options markets with leverage options available. Secondly, it is also transparent in its assets by providing regularly updated proof of reserves that show all users’ assets are held 1:1. Lastly, it offers a wide range of features, which include several staking options, lending and borrowing services, an NFT marketplace, copy trading, a practice account, and a crypto card. As a global exchange, it can be used entirely in Japanese and has live customer support in the language, available 24/7.
- Minimum Deposit: ¥1000 for first-time deposit.
- Supported Assets: 1000+ Cryptocurrency.
- Regulation: Registered with the FSA in Japan.
- Fees: Costs include a 0.1% fee for spot trading, 0.01% fee for maker orders, and 0.06% for taker orders on futures markets. Deposits and withdrawals in JPY are completely free of charge.
2. Uphold
Uphold is considered the second-best platform for Japanese investors. It is second only to Bybit because it cannot be used in Japanese, has fewer tokens, and only supports credit/debit card deposits. Uphold is a multi-asset exchange that offers trading on over 250 cryptocurrencies plus a variety of fiat currencies and commodities. It also is one of the few platforms globally that undergo regular audits to show their proof-of-reserves are backed 1:1. It 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 staking services, allowing users to earn a yield on their assets.
- Minimum Deposit: ¥5000 for first-time deposit.
- Supported Assets: 300+ Cryptocurrency, Forex & Commodities.
- Regulation: Regulated in Japan.
- Fees: Costs include 1% for buying or selling a cryptocurrency, and deposit fees vary depending on the payment method.
3. OKX
OKX is another great option for Japanese investors as it provides a wide range of features, specializing in DeFi and NFT products. These include an NFT marketplace with thousands of projects, a native blockchain called OKTC Chain, an in-built crypto wallet, OKX wallet, and on-chain staking and yield farming options. On the actual exchange, there are several key components, such as a mobile app, multiple order types, 24/7 customer support, various staking options, lending and borrowing services, and more. These versatile offerings make it an all-in-one platform for cryptocurrency investors in Japan and provides live support in the language.
- Minimum Deposit: ¥4000 for first-time deposit.
- Supported Assets: 400+ Cryptocurrency.
- Regulation: Not registered in Japan.
- Fees: Costs include a 0.3% fee for spot trading, 0.02% fee for maker orders, and 0.05% for taker orders on futures markets. Deposits and withdrawals in JPY vary depending on the payment method.
4. KuCoin
KuCoin is the fourth choice for Japanese traders and is popular for trading altcoins, dog coins, and meme coins, supporting over 700 cryptocurrencies. There are multiple trading options available, including spot, options and derivatives markets with up to 100x leverage, making it perfect for advanced traders. There are other features, such as crypto loans, staking services, trading bots, an NFT marketplace, Launchpad, an OTC desk and more. As a globally accessible exchange, it can be used in 20 languages, including Japanese and English.
- Minimum Deposit: ¥2000 for first-time deposit.
- Supported Assets: 700+ Cryptocurrency.
- Regulation: Not regulated in Japan.
- Fees: Costs include a 0.1% fee for spot trading. Deposits and withdrawals vary depending on the payment method.
5. bitFlyer
bitFlyer is the largest cryptocurrency exchange in Japan and is based in Tokyo. 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 option. We thoroughly evaluated the platform and found that it was easy to use and had a user-friendly interface that makes trading convenient for both beginners and experienced traders. It offers its users various features, such as spot, margin, and futures trading, a crypto credit card, a mobile app, a T-points to Bitcoin convert service, and more.
- Minimum Deposit: ¥10000 for first-time deposit.
- Supported Assets: 100+ Cryptocurrency.
- Regulation: Regulated by the FSA.
- Fees: Costs include a 2% fee for spot trading. Deposits and withdrawals in JPY vary depending on the payment method.
Is Cryptocurrency Regulated in Japan?
The cryptocurrency landscape in Japan plays a pivotal role in the financial domain, supported by meticulous regulation. The Financial Services Agency (FSA) is the chief regulatory institution overseeing the digital asset industry. This body is instrumental in ensuring the crypto market's expansion while safeguarding Japanese investors' interests.
To achieve these objectives, the FSA enforces a series of regulations and standards for digital currency exchanges operating within Japan. These include stringent Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) protocols, consistent with the global Financial Action Task Force (FATF) recommendations, which Japan as a participating nation adheres to.
How to Buy Bitcoin in Japan
In Japan, those eager to enter the crypto realm find Bybit an exceptional choice. This exchange facilitates the easy deposit of Japanese Yen through multiple avenues such as bank transfers, credit cards, debit cards, and Line Pay. Bybit offers a wide selection of over 1000 digital assets, including Bitcoin, which can be both traded and staked.
To start trading BTC in Japan, follow these steps:
- Initiate Account Creation: Register on Bybit and complete the necessary verification steps.
- Select Deposit Method: Visit the 'Buy Crypto' section and choose a deposit method.
- Choose BTC: Select 'JPY' as your deposit currency and Bitcoin as the asset.
- Complete Purchase: Input the amount you wish to invest and press 'Buy' to finalize your Bitcoin purchase.
Japanese Tax Requirements
In Japan, the National Tax Agency (NTA) oversees cryptocurrency taxation, setting clear guidelines for both individuals and businesses. Japanese residents holding cryptocurrencies must report the value of their holdings for tax purposes, which can affect their wealth tax calculations. Unlike some regions, Japan also applies capital gains tax to profits from these digital assets.
For Japanese enterprises and self-employed individuals, cryptocurrencies are recognized as business assets. This classification means that both income and wealth taxes apply. Profits derived from activities such as mining, staking, or lending are taxed as business income. Additionally, the consumption tax may apply to certain cryptocurrency transactions.
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 platforms vetted, Bybit, Uphold, OKX, KuCoin, and bitFlyer emerge as the top 5, each having their unique strengths.
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.
