Best Crypto Exchanges Japan

Top Crypto Apps in Japan

‍Our in-depth analysis has pinpointed the premier cryptocurrency applications and platforms tailored for Japanese investors. We evaluate each exchange based on numerous criteria, including the availability of Japanese Yen deposit options, user interface, charges, and security protocols. Adherence to the Financial Services Agency (FSA) of Japanese regulations is also taken into account. As a result of this process, we have identified the top five cryptocurrency exchanges in Japan. 

‍

1. Bybit

Bybit is the best cryptocurrency exchange in Japan for several reasons. Although it is not based in Japan, the platform can be used in Japanese, and it offers Japanese-speaking customer support. Because it’s offshore, it is not subject to the same laws as native crypto exchanges and does not require KYC to open an account. Additionally, it is one of the few platforms globally that provides proof-of-reserves which highlights users' funds are held on a 1:1 basis, giving investors peace of mind that their assets are safely secured and accessible. It also provides the lowest costs in the country with free JPY deposits and a 0.1% trading fee.

• Minimum Deposit: ¥‎250.
• Supported Tokens: 400+ Cryptocurrencies.
• Languages: Japanese, English & 20 other languages.
• JPY Funding Method: Bank Transfer, Credit/Debit Card, Line Pay, PayPay, Japan Post Bank, PayPal & Wise.

‍

2. OKX

OKX is the second choice for Japanese investors. It shares many similarities with Bybit, but the platform isn't available in Japanese or provides customer support in the language. It also offers transparency in its assets and provides proof of reserves, but it requires KYC (identity verification) to use the exchange. It is a derivatives trading platform that has multiple order types, including futures, spot, margin, and options trading. In addition to trading, users can also stake, borrow and lend tokens with staking services and crypto loans available.

• Minimum Deposit: ¥‎100.
• Supported Tokens: 300+ Cryptocurrencies.
• Languages: English & 21 other languages.
• JPY Funding Method: Bank Transfer, Credit/Debit Card, Line Pay, Zen & Revolut.

‍

3. DMM

DMM is the largest cryptocurrency exchange in Japan and our third pick as it offers significantly fewer tokens on its platform when compared to Bybit and OKX. However, it offers 24/7 Japanese-speaking customer support and is Japan's most used digital asset exchange. A notable advantage of DMM is its one-hour verification guarantee, ensuring rapid account verification that allows users to deposit funds and make trades within an hour of signing up. This is not as swift as Bybit's instant verification, as it doesn't require KYC.

• Minimum Deposit: ¥2000.
• Supported Tokens: 30 Cryptocurrencies.
• Languages: Japanese & English.
• JPY Funding Method: Bank Transfer.

‍

4. Uphold

Uphold is the fourth-best trading platform for Japanese investors as it cannot be used in Japanese and doesn’t provide customer support in the language. However, it is one of the world's most secure and transparent cryptocurrency exchanges and the only one with its reserves regularly audited to prove all user's funds are completely backed 1:1 on the platform. In addition to buying and selling crypto, Uphold allows its users to invest in various commodities like Gold and Silver, plus traditional currencies like the Japanese Yen and US Dollar. 

• Minimum Deposit: ¥1000.
• Supported Tokens: 250+ Cryptocurrencies.
• Languages: English & Spanish.
• JPY Funding Method: Google Pay, Apple Pay, Credit Card & Debit Card.

‍

5. bitFlyer

bitFlyer is our fifth pick for Japanese investors and the country's second-largest exchange. Although it offers fewer tokens than DMM and the other platforms on this list, it is the only one that accepts cash deposits. In addition to trading Cryptocurrency, it also offers a Crypto Credit Card, which allows users to spend any of the 19 supported tokens on real-life purchases like bills, groceries, shopping, and more. One of the other key benefits is the T-point system, which allows Japanese investors to swap T-points directly for Bitcoin.

• Minimum Deposit: ¥1000.
• Supported Tokens: 19 Cryptocurrencies.
• Languages: Japanese & English.
• JPY Funding Method: Bank Transfer, Credit/Debit Card, Convenience store, Internet Banking (AEON Bank, Pay-easy, SBI Sumishin Net Bank) & ACH Transfer.

‍

How does the FSA regulate Crypto?

The Japan Financial Services Agency (FSA) plays a pivotal role in the regulation of cryptocurrency exchanges in Japan by implementing licensing requirements and ensuring compliance with its regulations. Like other financial regulatory bodies worldwide, the FSA has laid down stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) guidelines that crypto exchanges must adhere to to prevent illicit activities and promote a transparent market environment.

In Japan, cryptocurrency exchanges must register with the JFSA and employ rigorous security measures to safeguard customer information and assets. The regulatory body also emphasizes the importance of transparent communication between the exchanges and their users. The FSA actively engages in international collaboration to align Japan’s cryptocurrency regulations with global standards. This is aimed at ensuring a harmonized and secure ecosystem for cryptocurrency transactions in the country.

‍

Do you have to pay tax on Crypto in Japan?

Cryptocurrency taxation in Japan is treated as a form of miscellaneous income, which means that profits derived from crypto transactions are subject to taxation. The tax rates applied to these gains can range from 15% to 45%, depending on the individual's total annual income. 

It is crucial for Japanese investors to maintain accurate records of their cryptocurrency transactions, as they are responsible for reporting their crypto-related profits when filing their annual tax returns. Additionally, Japanese residents earning income from overseas-based exchanges must also report this income to ensure compliance with the country's tax laws.

‍

Is Crypto Staking Legal in Japan?

‍Yes, engaging in the purchase and staking of cryptocurrencies is fully permissible in Japan. Investors are urged to exercise caution and opt for platforms that adhere to Japan's regulatory standards, ensuring a secure investment landscape. It is crucial to ascertain whether the cryptocurrency exchange of your choice supports staking services within Japan. For instance, while a global platform like Kraken facilitates trading for Japanese residents, it might have limitations regarding staking options. 

‍

The Bottom Line

To recap, Japanese investors looking for a reliable cryptocurrency exchange have several top choices, with Bybit ranking as the best overall platform. Other notable options include OKX, DMM, Uphold, and BitFlyer, each with distinct features and benefits. Crypto trading is legal and taxed in Japan, so it's important for investors to maintain accurate transaction records for tax purposes. The country's progressive regulations foster a secure, transparent, and regulated environment for digital assets, making Japan a leader in cryptocurrency adoption in Asia.