Is Cryptocurrency Legal in Japan? is a hot trending topic.
Is it possible to buy and sell cryptocurrency throughout the country without breaking any laws?
We’ll find out.
Japan is one of the most technologically advanced countries in the world, so you might be surprised to know that they’ve only just now started regulating cryptocurrencies.
The government has recently passed a law called the “Act on Prevention of Transferring Criminal Proceeds” which prohibits people from using cryptocurrencies for money laundering and other criminal activities.
But don’t worry, there are still some ways that Japanese citizens can legally invest in crypto if they want to.
So is cryptocurrency legal in Japan? Is it safe to use or not? Keep reading and we’ll find out together in this blog post.
Is Cryptocurrency Legal in Japan?
Yes, of course, cryptocurrency is legal in Japan.
This means that Japanese citizens can trade, buy and sell cryptocurrencies without regulatory restrictions.
This is due to the country’s progressive regulation which aims to support rather than restrict the growth of new technologies such as cryptocurrency trading platforms.
In fact, Japan took a very different approach compared with its neighbors China or South Korea who have banned ICOs (tokens issued by companies to raise funds) and cryptocurrency exchanges, respectively.
These countries also criminalized the mining of cryptocurrencies.
Japan’s approach has been more supportive resulting in a growing number of crypto-friendly business hubs outside Japan with many foreign startups relocating their operations there due to its strong economy and inclination towards technological innovation.
In addition to supporting cryptocurrency trading, Japan has also become a popular destination for ICOs.
This trend was started by the Japanese messaging giant LINE Corp which launched its own token in Singapore and raised $150 million from around 40 billion yen ($368 million) worth of investments within two months after it opened up an alternative financing option called “BitBox” to its 200 million users worldwide.
In addition, Japan recently passed an amended Payment Services Act which recognized cryptocurrencies as legal tender, regulated crypto exchanges, and legalized ICOs.
As a result of these efforts, Japan has succeeded in becoming one of the world’s leading countries for bitcoin trading as well as an international hub for blockchain technology companies.
With all this been said let’s look at some cryptocurrencies with good potentials to invest in…
Top 20 Cryptocurrencies to Invest in Japan
Cryptocurrency has been around for a while now and it is one of the most popular investment options in Japan.
One of the main reasons why digital currencies are popular is because they are decentralized which makes them more secure.
Another reason why the cryptocurrency is so popular in Japan is that there are no foreign exchange restrictions when trading between cryptocurrencies.
The top cryptocurrencies to invest in when you live in Japan includes:
- Bitcoin
- Ethereum
- Litecoin
- Ripple
- Dash
- Monero
- Zcash
- Neo
- Bitcoin Cash
- Ethereum Classic
- IOTA
- NEM
- Cardano
- Lisk
- Ethereum Classic
- Ark
- OmiseGo
- VeChain Thor
- QTUM
- RaiBlocks.
The above crypto coins are the Top 20 list of cryptocurrencies to invest in Japan.
They have been chosen according to their market capitalization, popularity, and other factors that make them better investment options for people living in Japan.
Is Cryptocurrency regulated in Japan?
No, cryptocurrency is not regulated in Japan.
However, the Financial Services Agency (FSA) is currently examining cryptocurrency exchanges with an aim to regulate them.
It has been reported that sixteen of Japan’s exchange operators will be required to register as part of a government-led initiative named the “Virtual Currency Act” which was passed in 2017.
Although cryptocurrency has not been regulated in Japan, it is important to note that some mainstream banks do refuse to process transactions involving cryptocurrencies.
However, this does apply only to the major international crypto exchanges such as Coinbase and Binance which are likely still compliant with regulations set out by US financial authorities since both platforms host customers from around the globe.
Do Japanese banks accept Bitcoin or any type of Crypto?
This question seems to be frequently asked by people outside of Japan.
Well, Japanese banks do not accept Bitcoin or any other cryptocurrency.
While they are aware of the crypto industry, they do not recognize it as a formal form of payment in Japan at this time.
This is why you will likely have to convert your Bitcoins into cash before depositing them into one of these accounts.
On the positive side, there are some Japanese banks that do allow you to deposit cash into your account in exchange for Bitcoin.
How can I buy Bitcoin legally in Japan?
In Japan, Bitcoin is legal and can be bought from several Crypto exchanges.
Some of the cryptocurrency exchanges in which you can buy Bitcoin are:
- Quoinex
- bitFlyer
- Coincheck.
The process of buying Bitcoin is quite simple as you will have to sign-up with the exchange that works for you following their KYC (Know Your Customer) procedure after which they send your Bitcoins to your wallet address or directly into an online account where you can withdraw it.
Can you buy crypto with a credit card in Japan?
Yes, there are services that accept credit cards for crypto purchases.
You can find several exchanges to purchase bitcoin and other cryptocurrencies through your Visa or MasterCard on crypto exchanges like Coinmama.
To buy cryptocurrency on Coinmama, you will need to verify your identity and only purchase the amount of bitcoin that is allowed in Japan.
You can then send or withdraw your coins from Coinmama anytime after purchasing them.
The process may be a bit tedious but it’s not too difficult for most people with credit cards.
Is Coinbase legal in Japan?
Yes, Coinbase is legal in Japan!
It is completely fine to use Coinbase in Japan because it does not fall under any of the prohibited activities.
It’s important to note that there are limits and regulations on sending and receiving money from/to a Japanese bank account, but Coinbase will follow those rules as long as you’re using our product appropriately.
In order to send or receive money to/from Japan, you would need an account with a bank in the country.
Is Binance legal in Japan?
Binance is the world’s largest cryptocurrency exchange to receive an operational license in Japan.
That means it operates legally, without any hindrance or intervention by regulations imposed by authorities in Japan.
However, it is not 100% legal.
It has yet to receive a license from the Japanese Financial Services Agency (JFSA). That means that in Japan its activities are still very much restricted.
It will need to have its system reviewed by the Financial Services Agency before it can introduce margin trading.
Binance is also dealing with a couple of lawsuits filed against them in Japan for ‘unauthorized’ activity as an exchange. That means they are not recognized as having any authority or rights to deal with cryptocurrencies and exchanges.
Can I convert Bitcoin to cash in Japan?
The best way to Cash out of Bitcoin in Japan is to use a crypto exchange Bitflyer. The Japanese Yen is the most popular fiat currency to trade with Bitcoin, so it should be one of your top choices if you are looking for an exchange that has a quick and easy way to cash out.
The process can vary slightly depending on what crypto wallet you use but in general, all exchanges require some basic information about yourself including your name, address, and ID number. You will also need to confirm the transaction with two-factor authentication which is a safeguard against fraud.
What is the future of cryptocurrencies In Japan?
Cryptocurrency in Japan is quickly becoming widespread, with over 50% of the population owning cryptocurrency.
The Japanese government wants the cryptocurrency market to be regulated.
What this means is that they want cryptocurrencies to be considered valid currency and not just a speculative asset.
What this also means is that they want all crypto-related businesses operating in Japan to be strictly licensed and regulated by the FSA.
The FSA will also require exchanges dealing with digital assets to comply with KYC and anti-money laundering standards.
The good news is that cryptocurrency’s future in Japan looks bright.
Is Bitcoin or Cryptocurrency taxable in Japan?
This question has been asked a lot recently so here are my thoughts.
Yes, bitcoin is taxed just like other currencies are in Japan.
You should declare any bitcoin that has loses or gains on them which would be provided for on your yearly income taxes.
There is no limit to what you can spend with cryptocurrency, but there is to how much you can make with it because of income taxes.
By making investments into cryptocurrency it would be smart to declare those as well because if you make a loss on that investment then you could get taxed for the amount.
Is Cryptocurrency banned in Japan?
No, cryptocurrency is not banned in Japan.
Japan has imposed a regulatory scheme, according to which cryptocurrency exchanges operating within the country would need to register with and comply with several regulations enacted by FSA, the Japanese Financial Services Agency.
Is trading in cryptocurrency legal in Japan?
Yes, trading cryptocurrency is legal in Japan
The Bank of Japan recognizes cryptocurrency as a legitimate form of payment for goods and services.
Most exchanges now have their status registered with the financial regulator, the Financial Services Agency, which has jurisdiction over them.
In a nutshell, they aren’t subject to the rules implemented by Japan’s finance ministry on regular currencies.
Is investing in cryptocurrency legal in Japan?
Yes, Investing in cryptocurrency is legal in Japan.
Japan recognizes Bitcoin as a form of payment and local financial institutions have been given permission to facilitate transactions, making it legal to trade and invest in the currency.
It is also clear that virtual currencies should be treated as an asset by regulators and trading could be taxed similarly. Just like China, Japan has yet to issue any warnings for citizens not to invest in cryptocurrency.
Japan was one of the first countries that recognized Bitcoin as a legitimate form of money back in April 2017, with no restriction or legislation hindering crypto-trading or investments since then, though the country’s Financial Services Agency has issued several warnings about cryptocurrencies being volatile assets with their associated risks.
Is mining cryptocurrency legal in Japan?
Yes, mining cryptocurrency is legal in Japan.
However, the sale of mined cryptocurrency for money may be considered to be taxable income.
Japan is one of the countries with a high level of understanding about digital currencies and an accommodating regulatory environment.
Mining cryptocurrency in Japan is not prohibited by law.
Is buying and selling cryptocurrency legal in Japan?
Purchasing and selling cryptocurrency is legal in Japan.
The Financial Services Agency (FSA), Japan’s financial regulator, has no authority to restrict people from buying or selling cryptocurrency.
However, the FSA does have the power to regulate exchanges in Japan and make them abide by strict anti-money laundering requirements.
Is Cryptocurrency Legal in Japan – Final Thoughts
Cryptocurrency is legal in Japan, so the Japanese can invest and trade in cryptocurrency as much as they want.
In fact, the Japanese were some of Bitcoin’s earliest adopters, and have been involved in cryptocurrencies since their inception.
Even though cryptocurrency is legal in Japan, there are a few things to consider before investing or trading in cryptocurrency.
First of all, there are no laws or regulations that protect cryptocurrencies from manipulation by financial institutions and corporations.
In fact, the Japanese Financial Services Agency (FSA) has been cracking down on a number of exchanges lately because they have not followed their guidelines properly.
The FSA also stated recently that it will be coming out with new rules that will allow it to monitor cryptocurrency exchanges.
This is good news for the Japanese because it shows that the FSA will be protecting cryptocurrency exchanges from manipulation.
Finally, always make sure you do your own research (DYOR) before trading or investing in any cryptocurrency.
The cryptocurrency market can be extremely volatile and it is possible for a currency to rise in value by hundreds of percentage points overnight, only to plummet the next day.
Make sure you research each currency thoroughly before investing or trading any amount of your currency.
