Is crypto legal in Japan?
Cryptocurrency is legal in Japan, but subject to regulatory restrictions.
Eastern Asia · JP · 8 of 9 dimensions sourced
Japan crypto policy at a glance
Stage of the central bank digital currency programme — research, pilot, or launched.
Whether crypto is legal, restricted, or banned for individuals and businesses.
“The term 'crypto-assets' as used in this Act means ... property value ... which can be used in relation to unspecified persons for the purpose of paying consideration for the purchase or leasing of goods or the receipt of provision of services and can also be purchased from and sold to unspecified persons”
Whether the jurisdiction licenses crypto/VASP service providers.
“A person registered by the prime minister may provide crypto-asset exchange services.”
Rules governing stablecoin and e-money-token issuance.
“The amendments ... pertain to the enforcement of the 'Act Partially Amending the Payment Services Act, etc.' ... The amendments took effect on June 1, 2023.”
How crypto gains are taxed and reported, including OECD CARF participation.
“The Act on Special Provisions ... has been amended as part of the tax reform of 2024 (effective January 1, 2026). This amendment introduced a system whereby RCASPs ... report information pertaining to Crypto-Asset Transactions.”
How decentralized finance (DeFi) is treated by regulators.
“In light of the rapid development of decentralized finance (DeFi) and other crypto-asset related services, the FSA is examining appropriate regulatory and supervisory responses, taking into account international discussions.”
Whether NFTs are addressed in regulation.
“So-called NFTs that are unique and not intended to be used as a means of payment are generally not classified as ‘crypto-assets’ under the Payment Services Act, but certain NFTs with investment characteristics may fall under the definition of securities.”
Policy toward crypto mining — permitted, restricted, or banned.
Intensity of regulatory enforcement actions against crypto firms.
“The FSA has taken administrative actions against crypto-asset exchange service providers pursuant to the Payment Services Act.”
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