Japan

Regulated Partly Confirmed Verified August 24, 2026

Japan regulates crypto-asset exchange and custody services under the Payment Services Act. Stablecoin and securities-token activities have separate statutory requirements.

Financial Services Agency

Total Laws (incl. applicable EU-wide)

Effective Laws

At a Glance

Is holding crypto allowed?

Allowed

Is crypto trading allowed?

Regulated

Is P2P trading allowed?

Allowed

Are crypto payments allowed?

Regulated

Is crypto legal tender?

Is mining allowed?

Allowed

Is staking allowed?

Regulated

Is DeFi participation allowed?

Regulated

Are stablecoins allowed or regulated?

Regulated

Activity Status Matrix

Activity	Status	Details
Holding Crypto	Allowed	Is holding crypto allowed?
Crypto Trading	Regulated	Is crypto trading allowed?
P2P Trading	Allowed	Is P2P trading allowed?
Crypto Payments	Regulated	Are crypto payments allowed?
Legal Tender	No	Is crypto legal tender?
Mining	Allowed	Is mining allowed?
Staking	Regulated	Is staking allowed?
DeFi	Regulated	Is DeFi participation allowed?
Stablecoins	Regulated	Are stablecoins allowed or regulated?
NFTs	Regulated	Are NFTs allowed or regulated?
Token Launches	Regulated	Are token launches allowed?
Crypto Advertising	Regulated	Is crypto advertising allowed?
Banking Access	Regulated	Do crypto businesses have banking access?

Regulation Overview

Japan has a mature crypto regulatory framework. The Payment Services Act defines crypto assets and requires registration for crypto-asset exchange services, custody and, from June 2026, qualifying intermediary services. Customer assets, cybersecurity, segregation and AML controls are supervised by the Financial Services Agency and local finance bureaus. Security tokens and crypto derivatives may fall under the Financial Instruments and Exchange Act. Fiat-linked digital money-type stablecoins are treated as electronic payment instruments and issuance is limited to regulated entities such as banks, fund-transfer service providers and trust companies.

Tax Information

For individuals, gains from crypto transactions are generally reported as miscellaneous income unless the facts support another category. Corporate and consumption-tax treatment follows separate rules.

Individual Tax Treatment

Individuals calculate yen-denominated income for disposals, exchanges, purchases, mining, staking and other receipts. Crypto transaction income is generally included in miscellaneous income and taxed at progressive rates with other income.

Business Tax Treatment

Corporate crypto holdings and transactions are subject to corporate tax and accounting rules, including valuation requirements and specific reforms. Businesses must keep transaction-level yen records.

National Tax Agency

Business & Licensing

Crypto-asset exchange and custody businesses require registration under the Payment Services Act. Electronic-payment-instrument and financial-instruments activities can require separate registration under the relevant statute.

AML / KYC Requirements

Registered service providers must conduct KYC, monitor transactions, segregate customer assets, maintain records, file suspicious reports and comply with travel-rule and sanctions controls.

Primary Regulator

Financial Services Agency

fsa.go.jp

Crypto Laws & Regulations in Japan

Acteffective

Japan Crypto Intermediary Amendments

Electronic payment instruments and cryptoassets service intermediary system

Published: June 6, 2025Effective: June 1, 2026Ref: 2025 PSA Amendments

Creates a registered intermediary category for agents acting for registered providers.

LicensingExchangesPayments

Official Source

Acteffective

Act Partially Amending the Payment Services Act, Act on Prevention of Transfer of Criminal Proceeds and Related Acts

Published: June 10, 2022Effective: June 1, 2023Ref: Act No. 61 of 2022 (令和4年法律第61号)

Japan brought fiat-referenced electronic payment instruments and their intermediaries into the payments and AML perimeter, alongside rules for high-value transferable prepaid instruments.

Current state: In force from 2023-06-01; subsequent amendments must also be checked

AML/KYCConsumer ProtectionLicensingStablecoinsPayments

Official Source

Acteffective

Act Partially Amending the Payment Services Act and Financial Instruments and Exchange Act

Published: May 31, 2019Effective: May 1, 2020Ref: Act No. 28 of 2019 (令和元年法律第28号)

Japan renamed virtual currency as crypto-assets, strengthened exchange and custody safeguards, and applied securities-market rules to crypto derivatives and certain tokenized investment rights.

Current state: In force from 2020-05-01; forms part of Japan's current amended framework

Consumer ProtectionCustodyLicensingEnforcementSecurities

Official Source

Acteffective