Crypto regulation in Japan
One of the first countries to license crypto exchanges, now moving crypto into its securities law.
Crypto is legal in Japan and has been regulated since 2017: exchanges must register with the Financial Services Agency and keep most customer coins offline. On July 15, 2026 the Diet passed amendments that move crypto under the Financial Instruments and Exchange Act, ban insider trading and pave the way for a flat 20% tax on gains, expected from 2028. Until then, gains are taxed as miscellaneous income at up to 55%.
Last reviewed: November 2026. Facts on this page were checked against official sources on November 4, 2026.
Japan at a glance
| Owning crypto | Legal, including self-custody. |
|---|---|
| Buying and selling | Through FSA-registered crypto exchange service providers. |
| Paying with crypto | Legal as a means of payment, not legal tender. |
| Exchange licensing | FSA registration since 2017; moving under the Financial Instruments and Exchange Act after the 2026 reform. |
| Mining | Legal. |
| Tax | Miscellaneous income, up to about 55% combined, until the planned separate 20% tax (expected 2028). |
| Stablecoins | Licensed issuance under the Payment Services Act since 2023; the first yen stablecoin launched in 2025. |
| Restrictions and bans | Retail crypto margin trading capped at 2x leverage; insider trading banned under the 2026 law. |
Owning crypto
Owning crypto is legal. Japan's law calls it a "crypto asset" and has recognized it as a means of payment since 2017.
Buying and selling
Japanese residents buy through exchanges registered with the Financial Services Agency (FSA). Registered exchanges must separate customer assets, keep the vast majority of customers' crypto in offline (cold) storage, and only list tokens that pass a review by the industry's self-regulatory body, the JVCEA. Foreign exchanges that solicit Japanese residents without registering receive FSA warnings.
Paying with crypto
Crypto can legally be used to pay, but it is not legal tender, so shops can refuse it.
Exchange licensing
Japan created exchange registration in 2017 after the 2014 collapse of Mt. Gox, which was based in Tokyo, and tightened it after the 2018 Coincheck hack. The amendments passed on July 15, 2026 reclassify crypto assets as financial products under the Financial Instruments and Exchange Act, require disclosures from issuers of certain tokens, ban insider trading, and raise penalties for unregistered businesses (up to 10 years in prison). They take effect within a year of promulgation, with details set by cabinet orders. The change is also expected to allow domestic crypto ETFs.
Mining
Mining is legal; rewards are taxable income.
Tax
Today, crypto gains are "miscellaneous income," added to your other income and taxed at progressive rates that reach about 55% including local tax, and losses can't be carried forward. The tax reform tied to the 2026 law would tax crypto gains separately at about 20%, like stocks, with a three-year loss carry-forward. It is expected to apply from January 2028.
Stablecoins
A 2022 amendment to the Payment Services Act (effective June 2023) allows stablecoins backed by yen or other fiat currency to be issued only by banks, trust companies and licensed money-transfer businesses. JPYC, the first licensed yen stablecoin, launched in October 2025.
Restrictions and bans
- Retail crypto margin trading is limited to 2x leverage.
- Unregistered foreign exchanges may not target Japanese residents.
- From the 2026 reform, trading on undisclosed inside information is illegal.
What changed recently
Crypto exchange registration begins under the Payment Services Act.
Crypto margin trading rules take effect, including the 2x leverage cap.
Stablecoin rules take effect.
First licensed yen stablecoin (JPYC) launches.
The Diet passes the law moving crypto under the Financial Instruments and Exchange Act.
- The 2026 law takes effect within one year of promulgation; implementing orders were still being prepared.
- The 20% separate tax depends on tax-reform legislation and is expected from January 2028.
- Approval of domestic spot crypto ETFs had not been confirmed.
This page summarizes the rules for general understanding. Laws change, and how they apply depends on your circumstances. For a decision that matters, check the official sources below or ask a qualified local adviser.
Frequently asked questions
Is crypto legal in Japan?
Yes. It has been regulated since 2017, and exchanges must register with the FSA.
How much is crypto tax in Japan?
Until the reform takes effect, gains are miscellaneous income taxed at up to about 55%. A separate 20% rate is expected from 2028.
What did Japan's 2026 crypto law change?
It moves crypto into the Financial Instruments and Exchange Act, bans insider trading, adds issuer disclosure and tougher penalties, and opens the way to crypto ETFs and lower taxes.
Where to next
Sources
- Crypto-assets (Financial Services Agency of Japan)
- Japan passes key bill recognizing crypto as financial product, lowering tax rate (The Block, July 2026)
- Japan Virtual and Crypto assets Exchange Association (JVCEA)
Written for beginners and checked against the sources listed. Last reviewed November 2026. This page is educational and is not financial, tax or legal advice. How we write and check pages.