# Japan crypto regulation

From the Four Pillars Asia Digital Asset Policy Center. Cite as: Four Pillars Asia Digital Asset Policy Center, "Japan crypto regulation", reviewed 2026-10-05, https://policy.4pillars.io/japan. Free to reuse with attribution: cite "Four Pillars Asia Digital Asset Policy Center" and link to the page the fact comes from (each market has its own URL), and to the primary source where one is given. Terms: https://policy.4pillars.io/developers#attribution


Page: https://policy.4pillars.io/japan
Region: East Asia. Last reviewed: 2026-10-05.

> Asia's first licensed crypto market is moving crypto into securities law, with insider-trading rules and a flat 20% tax to follow.

Japan learned crypto regulation the hard way. The Tokyo-based Mt. Gox collapse in 2014 and the ¥58 billion Coincheck hack in January 2018 pushed the Financial Services Agency (FSA) to build the world's first registration regime for exchanges, in force since April 2017 under the Payment Services Act. Cold storage, segregated customer assets and a certified industry body, the JVCEA, became the price of entry.

The next step was money. A 2022 amendment created a dedicated category for fiat-backed stablecoins, called electronic payment instruments, and limited issuance to banks, trust companies and licensed funds transfer providers. It sat unused for two years until SBI VC Trade registered to distribute USDC in March 2025, JPYC launched the first yen stablecoin in October 2025, and SBI Shinsei Trust Bank launched JPYSC, the first trust-type yen coin, in June 2026.

The turning point came on 15 July 2026, when the Diet enacted an amendment moving crypto trading out of payments law and into the Financial Instruments and Exchange Act (FIEA). Crypto becomes a financial instrument distinct from securities, with issuer disclosure for tokens that have an identifiable issuer, an insider-trading ban and securities-grade enforcement by the SESC. Tougher penalties for unregistered operators, up to 10 years in prison, already took effect on 12 August 2026; the main regime must start by July 2027.

For builders, Japan is slow to enter but predictable once inside. Twenty-seven registered exchanges serve more than 14 million accounts, yet a new venue still faces months of FSA review and JVCEA membership. The prize ahead is a flat 20.315% tax on approved tokens traded through licensed venues, already written into law in March 2026 and due from 2028, plus a legal path for crypto ETFs, which could turn Japan from a costly market for retail traders into a mainstream one.

### Snapshot

- Exchange licensing: Comprehensive. 27 registered exchanges under the PSA since 2017; the FIEA takes over supervision by July 2027
- Stablecoin regime: Comprehensive. PSA stablecoin regime since June 2023; JPYC, trust-type JPYSC and USDC are all live
- Tokenisation & RWA: Comprehensive. Security tokens regulated under the FIEA since May 2020, with JSTOA self-regulation
- Retail access: Comprehensive. Retail trades on 27 registered venues; 14.5 million accounts at JVCEA members in August 2026
- Tax clarity: Comprehensive. Taxed as misc. income at up to 55%; a flat 20.315% rate is enacted and due from 2028

### Quick answers

**Is crypto legal in Japan?**

Yes. Individuals can buy and sell crypto onshore through licensed providers. Retail trades on 27 registered venues; 14.5 million accounts at JVCEA members in August 2026. Four Pillars rates retail access in Japan as comprehensive (reviewed 5 Oct 2026).

**Who regulates crypto in Japan?**

Five authorities shape crypto rules in Japan. FSA (Financial Services Agency): registers and supervises exchanges, stablecoin intermediaries and securities firms; writes crypto policy. SESC (Securities and Exchange Surveillance Commission): FSA enforcement arm; gains criminal investigation powers over crypto market abuse under the 2026 FIEA amendment. BOJ (Bank of Japan): central bank; runs CBDC experiments and a pilot programme but has not decided to issue a digital yen. NTA (National Tax Agency): administers crypto income tax and publishes the official crypto tax FAQ and calculation sheets. JVCEA (Japan Virtual and Crypto Assets Exchange Association): FSA-certified self-regulatory body for exchanges; runs token screening and the Green List.

**Do crypto exchanges need a licence in Japan?**

Yes, under a dedicated regime. 27 registered exchanges under the PSA since 2017; the FIEA takes over supervision by July 2027. The main licences are Crypto-Asset Exchange Service Provider (CAESP) registration from FSA, held by 27 as of 1 Sep 2026; Electronic Payment Instrument Exchange Service Provider registration from FSA, held by 2 as of 27 Aug 2026; and Stablecoin issuance as a bank, trust company or funds transfer service provider from FSA. Four Pillars rates exchange licensing in Japan as comprehensive (reviewed 5 Oct 2026).

**Are stablecoins regulated in Japan?**

Yes, under a dedicated regime. PSA stablecoin regime since June 2023; JPYC, trust-type JPYSC and USDC are all live. The most recent official text is List of Registered Electronic Payment Instrument Exchange Service Providers (Financial Services Agency (FSA), 27 Aug 2026, in force). Four Pillars rates its stablecoin regime in Japan as comprehensive (reviewed 5 Oct 2026).

**How is crypto taxed in Japan?**

Top rate as miscellaneous income today; a flat 20.315% is enacted, from the January after the FIEA amendment takes effect (expected 2028). Four Pillars rates tax clarity in Japan as comprehensive (reviewed 5 Oct 2026).

**Can real-world assets be tokenised in Japan?**

Yes, under a dedicated regime. Security tokens regulated under the FIEA since May 2020, with JSTOA self-regulation. Four Pillars rates tokenisation and real-world assets in Japan as comprehensive (reviewed 5 Oct 2026).

**What changed most recently in Japan's crypto rules?**

12 Aug 2026: Tougher penalties for unregistered operators take effect. Twenty days after promulgation, the maximum sentence rose to 10 years and the SESC gained criminal investigation powers. 15 Jul 2026: Diet enacts the FIEA amendment for crypto-assets. Law No. 64 of 2026 moves crypto trading into securities law and adds issuer disclosure and an insider-trading ban.

**What should companies watch next in Japan?**

Cabinet Office ordinances for the FIEA amendment: the list of specified crypto-assets, disclosure templates and insider-trading details, due before the regime starts by July 2027. Start of the flat 20.315% separate tax, enacted in March 2026, which applies from 1 January of the year after the FIEA amendment takes effect, so 2028 if it starts in 2027. Investment trust rule changes that would allow the first spot crypto ETFs, which the tax outline already anticipates.

### Key numbers

- 27 Registered crypto-asset exchange service providers (as of 2026-09-01)
- 14.5M Crypto trading accounts at JVCEA members (as of 2026-08)
- 20.315% Flat tax rate enacted for specified crypto-assets from 2028, down from a top rate of about 55% (as of 2026-03-31)
- 10 years Maximum prison term for unregistered crypto business, from 12 August 2026 (as of 2026-08-12)

### What to watch

- Cabinet Office ordinances for the FIEA amendment: the list of specified crypto-assets, disclosure templates and insider-trading details, due before the regime starts by July 2027.
- Start of the flat 20.315% separate tax, enacted in March 2026, which applies from 1 January of the year after the FIEA amendment takes effect, so 2028 if it starts in 2027.
- Investment trust rule changes that would allow the first spot crypto ETFs, which the tax outline already anticipates.
- The three megabanks' joint trust-type yen stablecoin, piloted under the FSA's Payment Innovation Project, moving toward live transactions in fiscal 2026.

### Regulators

- **FSA**, Financial Services Agency: Registers and supervises exchanges, stablecoin intermediaries and securities firms; writes crypto policy. Japan's single financial regulator. It licenses and supervises banks, insurers, securities firms and payment providers, and drafts financial legislation for the Diet. Has registered crypto exchanges under the Payment Services Act since April 2017 (27 as of September 2026) and stablecoin issuers and intermediaries since June 2023. It drafted Law No. 64 of 2026, which moves crypto trading into the FIEA by July 2027, and oversees the JVCEA as certified self-regulator. <https://www.fsa.go.jp/en/>
- **SESC**, Securities and Exchange Surveillance Commission: FSA enforcement arm; gains criminal investigation powers over crypto market abuse under the 2026 FIEA amendment. A commission within the FSA that monitors securities markets, inspects securities firms and investigates insider trading, manipulation and disclosure fraud, referring criminal cases to prosecutors. Since 12 August 2026 it can use criminal investigation powers against unregistered crypto business, now punishable by up to 10 years in prison. Once the FIEA amendment's main provisions start by July 2027, it will police insider trading and manipulation in crypto-assets as it does for shares. <https://www.fsa.go.jp/sesc/english/index.html>
- **BOJ**, Bank of Japan: Central bank; runs CBDC experiments and a pilot programme but has not decided to issue a digital yen. Japan's central bank. It sets monetary policy, issues banknotes and oversees the safety of payment and settlement systems. Has no licensing role over crypto firms or stablecoin issuers, which the FSA supervises. It has run CBDC proof-of-concept work and a pilot programme with private firms, but has not decided to issue a digital yen. <https://www.boj.or.jp/en/paym/digital/index.htm>
- **NTA**, National Tax Agency: Administers crypto income tax and publishes the official crypto tax FAQ and calculation sheets. Japan's tax collection agency, attached to the Ministry of Finance. It assesses and collects national taxes, runs tax audits and publishes official interpretations of tax law. Treats crypto gains as miscellaneous income taxed at progressive rates of up to about 55% including local tax, and updates its crypto tax FAQ and calculation sheets each year. It will administer the flat 20.315% rate on specified crypto-assets, enacted in March 2026 and expected to apply from 2028. <https://www.nta.go.jp/english/>
- **JVCEA**, Japan Virtual and Crypto Assets Exchange Association: FSA-certified self-regulatory body for exchanges; runs token screening and the Green List. An industry body certified by the FSA as the self-regulatory organisation for crypto exchanges. It writes binding rules for its members, monitors their compliance and can discipline them. Reviews tokens before members may list them and keeps the Green List of assets that can be listed without a fresh review, which largely decides what reaches Japanese retail. Membership is required in practice for a registered exchange; members held 14.5 million accounts in August 2026. <https://jvcea.or.jp/>

### Licences

#### Crypto-Asset Exchange Service Provider (CAESP) registration

- Regulator: FSA
- Legal basis: Payment Services Act, Chapter III-3 (moving to the FIEA by July 2027)
- Covers: Buying, selling and exchanging crypto-assets for customers, intermediating those trades, and custody.
- Requirements: Stock company (or foreign company with a Japanese branch) with capital of at least ¥10 million and positive net assets; Customer fiat held in trust and customer crypto segregated, with most kept in cold wallets; Annual external audit of financial statements and of segregation; AML/CFT programme, travel rule compliance and IT security review; JVCEA membership in practice, including its token screening rules
- Holders: 27 (as of 2026-09-01)
- Notable holders: bitFlyer, Coincheck, bitbank, GMO Coin, SBI VC Trade, Rakuten Wallet, Binance Japan, Mercoin
- Official register: <https://www.fsa.go.jp/en/regulated/licensed/index.html>
- Page: https://policy.4pillars.io/japan/licences#lic-1

#### Electronic Payment Instrument Exchange Service Provider registration

- Regulator: FSA
- Legal basis: Payment Services Act (2022 amendment, in force June 2023)
- Covers: Buying, selling, exchanging and holding stablecoins, including approved foreign stablecoins, for customers.
- Requirements: Registration with the Local Finance Bureau and fit and proper management; Segregation of customer stablecoins and funds; Due diligence on foreign stablecoins, including issuer reserves and redemption; AML/CFT and travel rule compliance
- Holders: 2 (as of 2026-08-27)
- Notable holders: SBI VC Trade, Coincheck
- Official register: <https://www.fsa.go.jp/en/regulated/licensed/denshikessaisyudan.pdf>
- Page: https://policy.4pillars.io/japan/licences#lic-2

#### Stablecoin issuance as a bank, trust company or funds transfer service provider

- Regulator: FSA
- Legal basis: Payment Services Act, Banking Act and Trust Business Act
- Covers: Issuing fiat-backed electronic payment instruments redeemable at par, via deposit, trust or funds transfer structures.
- Requirements: Only banks, trust banks or trust companies, and licensed funds transfer providers may issue; Funds transfer issuers must fully back tokens with deposits or government bonds and honour redemption at par; Trust-type reserves held in bank deposits, with capped JGBs and term deposits allowed from June 2026; AML/CFT controls and FSA supervision of the issuer
- Notable holders: JPYC Inc. (funds transfer, Kanto No. 00099), SBI Shinsei Trust Bank (JPYSC)
- Official register: <https://www.fsa.go.jp/menkyo/menkyo.html>
- Page: https://policy.4pillars.io/japan/licences#lic-3

#### Electronic payment instrument and crypto-asset service intermediary registration

- Regulator: FSA
- Legal basis: Payment Services Act (2025 amendment, in force 1 June 2026)
- Covers: Introducing customers to registered exchanges or stablecoin intermediaries without holding customer assets.
- Requirements: Registration and submission of prescribed application documents; Disclosure to customers of the principal firm it works for; Ban on holding customer money or crypto-assets; Conduct rules and record-keeping set by Cabinet Office ordinance
- Page: https://policy.4pillars.io/japan/licences#lic-4

#### Crypto-asset trading business registration under the FIEA

- Regulator: FSA
- Legal basis: Financial Instruments and Exchange Act, as amended by Law No. 64 of 2026
- Covers: Replaces the CAESP registration once the 2026 amendment starts, covering spot trading, custody and intermediation of crypto-assets.
- Requirements: Existing CAESPs must re-register under the FIEA within transitional deadlines; Securities-style conduct rules, including suitability and advertising controls; Market surveillance and internal controls against insider trading and manipulation; Information provision on listed crypto-assets, including issuer disclosure for specified crypto-assets
- Page: https://policy.4pillars.io/japan/licences#lic-5

### Timeline

- 2017-04-01: Exchange registration regime takes effect. The amended Payment Services Act made Japan the first major economy to license crypto exchanges.
- 2018-01-26: Coincheck loses ¥58 billion in NEM. The hack triggered FSA inspections of every exchange and the certification of the JVCEA as a self-regulator.
- 2020-05-01: Crypto-assets renamed and security tokens brought under the FIEA. The 2019 amendments added custody rules, moved crypto derivatives into securities law and created electronically recorded transferable rights.
- 2023-06-01: Stablecoin regime and travel rule take effect. Fiat-backed stablecoins became electronic payment instruments that only banks, trust companies and funds transfer providers may issue.
- 2024-05-31: DMM Bitcoin loses 4,502.9 BTC. The roughly ¥48 billion theft led to the exchange's exit and tighter FSA scrutiny of hot wallet security.
- 2025-03-04: SBI VC Trade becomes the first electronic payment instrument exchange. The registration let it distribute USDC, the first foreign stablecoin sold legally in Japan.
- 2025-10-27: JPYC launches the first yen stablecoin. JPYC Inc. registered as a funds transfer service provider in August 2025 and began issuing a fully reserved yen token.
- 2025-12-10: FSA working group recommends moving crypto into the FIEA. The report cited more than 13 million accounts and over ¥5 trillion in customer assets as reasons to regulate crypto as an investment product.
- 2026-06-01: 2025 Payment Services Act amendment takes effect. It created a crypto and stablecoin intermediary registration and let trust-type stablecoins hold some reserves in JGBs and term deposits.
- 2026-06-24: JPYSC launches as the first trust-type yen stablecoin. Issued by SBI Shinsei Trust Bank and distributed by SBI VC Trade, it has no transfer cap.
- 2026-07-15: Diet enacts the FIEA amendment for crypto-assets. Law No. 64 of 2026 moves crypto trading into securities law and adds issuer disclosure and an insider-trading ban.
- 2026-08-12: Tougher penalties for unregistered operators take effect. Twenty days after promulgation, the maximum sentence rose to 10 years and the SESC gained criminal investigation powers.

### Primary sources

- [Green List and handled crypto-assets of JVCEA members](https://jvcea.or.jp/statistics/document/greenlist/). Japan Virtual and Crypto Assets Exchange Association (JVCEA), 2026-10-02, guidance. The FSA-certified self-regulator's list of tokens members can list without a fresh association review. It drives which assets reach Japanese retail.
- [On-chain Finance Forum for the AI Era](https://www.fsa.go.jp/news/r8/singi/20260925.html). Financial Services Agency (FSA), 2026-09-25, guidance. A cross-ministry forum chaired by the financial services minister to push blockchain-based on-chain finance into real use alongside sound use of AI by financial firms. The FSA's new Crypto-Asset and Stablecoin Division acts as secretariat.
- [Central Bank Digital Currency](https://www.boj.or.jp/en/paym/digital/index.htm). Bank of Japan (BOJ), 2026-09-11, guidance. The BOJ's CBDC hub, covering its proof-of-concept phases and ongoing pilot programme; the English edition of its June 2026 pilot progress report was posted on 11 September 2026. The bank has not decided to issue a digital yen.
- [List of Registered Crypto-asset Exchange Service Providers](https://www.fsa.go.jp/en/regulated/licensed/index.html). Financial Services Agency (FSA), 2026-09-01, in force. The official register, published as PDF and Excel. The Japanese edition dated 1 September 2026 lists 27 providers, 25 under the Kanto bureau and 2 under Kinki.
- [List of Registered Electronic Payment Instrument Exchange Service Providers](https://www.fsa.go.jp/en/regulated/licensed/denshikessaisyudan.pdf). Financial Services Agency (FSA), 2026-08-27, in force. Register of firms allowed to buy, sell and hold stablecoins for customers. Two are registered: SBI VC Trade since March 2025 and Coincheck since August 2026.
- [Cabinet order for the provisions of the 2026 FIEA amendment effective 20 days after promulgation](https://www.fsa.go.jp/news/r8/shouken/20260729/20260729.html). Financial Services Agency (FSA), 2026-08-12, in force. Confirms that heavier penalties for unregistered crypto business and expanded SESC criminal investigation powers took effect on 12 August 2026.
- [Further strengthening of measures to prevent fraud using crypto-assets](https://www.fsa.go.jp/news/r8/sonota/20260806/20260806.html). Financial Services Agency (FSA) and National Police Agency, 2026-08-06, guidance. Joint request to the JVCEA asking exchanges to hold back withdrawals for a period after deposits or purchases, pre-register withdrawal addresses, set withdrawal limits and freeze suspect accounts faster.
- [Act Partially Amending the Financial Instruments and Exchange Act and the Payment Services Act (Law No. 64 of 2026)](https://www.fsa.go.jp/common/diet/221/index.html). Financial Services Agency (FSA), 2026-07-15, enacted. Submitted 10 April 2026 and enacted 15 July 2026, it moves crypto trading from the Payment Services Act into the FIEA and adds issuer disclosure and an insider-trading ban. Promulgated on 23 July 2026, its penalties for unregistered business took effect on 12 August 2026; the main crypto provisions start on a date set by Cabinet Order within one year of promulgation, and a few other provisions on fixed dates in 2027. People behind it: Katayama Satsuki (Minister of Finance and Minister of State for Financial Services); Morishita Tetsuo (Professor of Law, Sophia University).
- [Cabinet order and ordinances implementing the 2025 Payment Services Act amendment](https://www.fsa.go.jp/news/r7/sonota/20260522/20260522.html). Financial Services Agency (FSA), 2026-05-22, in force. Sets the 1 June 2026 start date and lets trust-type stablecoins hold capped shares of JGBs and early-redeemable term deposits as reserves.
- [Explanatory materials for the 2026 FIEA and PSA amendment bill](https://www.fsa.go.jp/common/diet/221/02/03.pdf). Financial Services Agency (FSA), 2026-04-10, enacted. The FSA's slide explanation of the bill: specified crypto-assets, disclosure duties, business conduct rules for crypto trading firms and the new unfair trading provisions. People behind it: Katayama Satsuki (Minister of Finance and Minister of State for Financial Services); Morishita Tetsuo (Professor of Law, Sophia University).
- [Act Partially Amending the Income Tax Act, etc. (Law No. 12 of 2026)](https://www.mof.go.jp/about_mof/bills/221diet/st080220y.html). Ministry of Finance (MOF), 2026-03-31, enacted. Enacted and promulgated 31 March 2026, it creates a separate 15% national income tax (about 20.315% with local and reconstruction taxes) on specified crypto-assets sold through registered firms, with a three-year loss carry-forward. It applies from 1 January of the year after the FIEA amendment takes effect. People behind it: Katayama Satsuki (Minister of Finance and Minister of State for Financial Services); Taira Masaaki (Member of the House of Representatives (Liberal Democratic Party)).
- [Outline of the FY2026 Tax Reform](https://www.mof.go.jp/tax_policy/tax_reform/outline/fy2026/20251226taikou.pdf). Ministry of Finance (MOF), 2025-12-26, superseded. Cabinet decision to tax gains on specified crypto-assets sold through registered firms at a separate 20% rate with a three-year loss carry-forward, from 1 January of the year after the FIEA amendment takes effect. Enacted by the March 2026 Income Tax Act amendment.
- [Report by the Working Group on Crypto-asset Systems of the Financial System Council](https://www.fsa.go.jp/en/refer/councils/singie_kinyu/20260216.html). Financial Services Agency (FSA), 2025-12-10, guidance. The expert report that recommended regulating crypto as an investment product under the FIEA, distinct from securities. English publication notice dated 16 February 2026.
- [Tax treatment of crypto-assets and calculation sheets (December 2025)](https://www.nta.go.jp/publication/pamph/shotoku/kakuteishinkokukankei/kasoutuka/). National Tax Agency (NTA), 2025-12, guidance. The NTA's current FAQ and worksheets: crypto gains are miscellaneous income taxed at progressive rates of up to about 55% including local tax.
- [Payment Innovation Project: support decision for joint stablecoin issuance by the three megabanks](https://www.fsa.go.jp/news/r7/sonota/20251107-2/02.html). Financial Services Agency (FSA), 2025-11-07, guidance. The FSA backs Mizuho, MUFG, SMBC, Mitsubishi Corporation, MUFG Trust and Progmat in testing whether a stablecoin jointly issued by several bank groups can meet regulatory and operational requirements.
- [Act for Partial Amendment of the Payment Services Act (2025)](https://www.fsa.go.jp/common/diet/217/index.html). Financial Services Agency (FSA), 2025-06-06, in force. Law No. 66 of 2025 adds an intermediary registration for crypto and stablecoin services, lets the FSA order assets kept in Japan, and widens reserve assets for trust-type stablecoins. Enacted 6 June 2025, in force 1 June 2026.
- [Discussion Paper: Examination of the Regulatory Systems Related to Cryptoassets](https://www.fsa.go.jp/en/news/2025/20250410_2/01.pdf). Financial Services Agency (FSA), 2025-04-10, superseded. The FSA's first public case for shifting crypto from payments law to securities law, including insider-trading rules and disclosure for issuer-backed tokens. Overtaken by the December 2025 working group report and Law No. 64 of 2026.
- [Notification obligations regarding transfers of crypto-assets and electronic payment instruments](https://www.fsa.go.jp/en/newsletter/weekly2024/573_2.pdf). Financial Services Agency (FSA), 2024, guidance. FSA explanation of the travel rule as applied to exchanges and stablecoin intermediaries, including data to be sent with each transfer.
- [Act on Prevention of Transfer of Criminal Proceeds (Act No. 22 of 2007)](https://laws.e-gov.go.jp/law/419AC0000000022). National Diet (current text on e-Gov Law Search), 2023-06-01, in force. Japan's core AML law. Exchanges and stablecoin intermediaries must verify customers and, since June 2023, pass originator and beneficiary data on transfers.
- [Act for Partial Amendment of the Payment Services Act (2022, stablecoins)](https://www.fsa.go.jp/common/diet/208/index.html). Financial Services Agency (FSA), 2022-06-03, in force. Created electronic payment instruments, limiting issuance to banks, trust companies and funds transfer providers and licensing intermediaries. In force since 1 June 2023.
- [Financial Instruments and Exchange Act (Act No. 25 of 1948)](https://laws.e-gov.go.jp/law/323AC0000000025). National Diet (current text on e-Gov Law Search), 2020-05-01, in force. Japan's securities law, which already covers security tokens and crypto derivatives and will house spot crypto regulation once the 2026 amendment takes effect.
- [2019 amendments to the Payment Services Act and FIEA (crypto-assets and security tokens)](https://www.fsa.go.jp/common/diet/198/index.html). Financial Services Agency (FSA), 2019-05-31, in force. Introduced electronically recorded transferable rights, the legal basis for security tokens, and moved crypto derivatives into the FIEA. In force since 1 May 2020.
- [Payment Services Act (Act No. 59 of 2009)](https://laws.e-gov.go.jp/law/421AC0000000059). National Diet (current text on e-Gov Law Search), 2017-04-01, in force. The statute that has governed crypto-asset exchange services since April 2017 and electronic payment instruments since June 2023; the official text is current to Law No. 64 of 2026. Crypto provisions move to the FIEA once that amendment's main provisions start.