Crypto in Japan: The Ultimate Guide

Few countries have shaped the crypto landscape as visibly as Japan. It was the first major economy to license crypto exchanges under a national regulator, the site of the industry’s most consequential early hacks, and remains one of the most active markets in Asia. 

As of mid-2025, around 12.4 million Japanese residents hold crypto, with roughly ¥4.26 trillion (~$27.5 billion) in assets under custody according to data published by the Japan Virtual and Crypto-assets Exchange Association (JVCEA).

This guide walks through how to buy crypto in Japan safely, how to hold it without surrendering control, what the current and upcoming tax rules look like, and where self-custody fits in a regulated market that has still seen billions lost to centralised platform failures.

How Is Crypto Regulated in Japan?

Japan regulates crypto under the Payment Services Act (PSA), administered by the Financial Services Agency (FSA). The PSA defines crypto-assets as a category of property value that can be used to pay unspecified persons and transferred via electronic systems, distinct from Japanese yen, which remains the only legal tender. Following the 2014 Mt. Gox collapse, amendments to the PSA took effect in April 2017, establishing a mandatory registration regime for crypto-asset exchange service providers.

Any exchange serving Japanese residents must register with the FSA, segregate customer funds from corporate assets, implement strict cybersecurity measures, and comply with anti-money laundering (AML) and Know Your Customer (KYC) rules. Roughly 30 exchanges currently appear on the FSA’s official list of registered providers.

A second framework is moving into place. In December 2025, Japan’s ruling parties released a 2026 Tax Reform Outline that begins reclassifying crypto assets as financial products under the Financial Instruments and Exchange Act (FIEA). Once enacted, this would apply equity-style rules – including insider trading prohibitions, mandatory disclosure for around 105 approved tokens, and a flat tax rate to trading on registered exchanges. Industry observers expect the practical start date to land in 2027 or 2028, depending on legislative pace.

For users, two things matter. First, only assets traded through FSA-registered platforms qualify for the upcoming favourable tax treatment. Second, the framework places clear obligations on exchanges but does not regulate self-custody itself – holding your own keys remains permissionless.

How to Buy and Hold Crypto in Japan

There are two practical paths to buying crypto in Japan. The first is buying directly through Ledger Wallet™ so your assets land in self-custody from the moment you acquire them. The second is using an FSA-licensed exchange.

Both paths are legal and regulated. The difference is what happens to your private keys.

Option 1: Buy Directly Through Ledger Wallet™

Ledger Wallet™ is the application that pairs with your Ledger signer to manage, buy, swap, stake, and explore crypto. It integrates regulated fiat-to-crypto providers that accept Japanese yen, which means you can purchase Bitcoin (BTC), Ethereum (ETH), and many other assets and have them deposited straight to an address controlled by your Ledger signer. Your private keys never sit on an exchange, never touch an internet-connected app, and never leave the Secure Element chip on the signer.

The flow is straightforward:

1. Set up your Ledger signer and generate your 24-word Secret Recovery Phrase offline, following the on-device prompts.
2. Install Ledger Wallet™ on desktop or mobile and pair it with your signer.
3. Open the Buy section, choose a JPY-supporting provider, enter the amount, and confirm.
4. Verify the receiving address on your Ledger signer’s screen and approve the transaction physically by confirming on your signer.

The assets arrive at an address whose private key can be accessed by the Secret Recovery Phrase. There is no exchange custody step in between, no withdrawal queue, and no platform-solvency risk. For long-term holdings, this is the lowest-friction way to combine acquisition with security.

Option 2: Buy Through an FSA-Licensed Exchange 

Buying through an FSA-licensed exchange is the other route, and one many Japanese users still take out of habit or familiarity. Any platform on the FSA’s official register is required to segregate customer funds and meet baseline security standards. Major licensed options include bitFlyer, Coincheck, bitbank, GMO Coin, SBI VC Trade, Rakuten Wallet, and Binance Japan.

Verifying the platform is licensed protects you under Japan’s regulatory framework, but it does not protect you from the failure modes that framework cannot prevent. Once you have purchased, the safest next step is to withdraw to an address controlled by your Ledger signer. Anything you leave on the exchange depends on the platform’s security, solvency, and operational continuity.

Top Crypto Apps in Japan: A Comparison

The table below compares Ledger Wallet™ alongside two of Japan’s most-used FSA-licensed exchanges to help you understand how each option works in practice. All three are regulated platforms; the difference lies in who controls your private keys.

Ledger Wallet™

• Assets supported: 15,000+ coins and tokens, including BTC, ETH, SOL, XRP, and major stablecoins
• KYC required: Not required to use Ledger Wallet™, though third-party fiat providers may request verification for fiat purchases
• Trading fees: No platform fees; third-party providers charge their own rates for buys, swaps, and on-ramps
• Deposit/withdrawal fees: No platform fees; network fees apply as on any blockchain
• Custody: Self-custody –  private keys remain on your Ledger signer, secured by a Certified Common Criteria EAL5+/EAL6+ Secure Element chip
• Why it works for Japanese users: Buying, holding, swapping, staking, and exploring web3 all happen through one interface, with assets that never depend on a third party’s solvency

bitFlyer

• Assets supported: Around 10–12 cryptocurrencies in the Japanese market (limited compared to international exchanges)
• KYC required: Yes – mandatory identity verification before trading or withdrawals
• Trading fees: No fees on the Buy/Sell interface (a spread is built into the quoted price); Lightning interface uses a volume-tiered model from 0.15% down to 0.01% based on 30-day JPY volume
• Deposit fees: Free for standard JPY bank transfers
• Withdrawal fees: ¥220 for JPY withdrawals under ¥30,000, ¥440 above; 0.0004 BTC for Bitcoin withdrawals
• Custody: Custodial – bitFlyer holds your private keys
• Notes: Japan’s longest-running exchange, founded in 2014. Deep BTC/JPY liquidity, but a limited token selection compared with international platforms. As with any custodial platform, your assets depend on the operator

Coincheck

• Assets supported: Around 25 cryptocurrencies with JPY trading pairs
• KYC required: Yes –  full identity verification required before trading
• Trading fees: 0% maker/taker on BTC and several other major pairs on the order-book exchange; Marketplace (instant Buy/Sell) uses a spread of approximately 0.1%–5% depending on the asset and market conditions
• Deposit fees: Free for standard JPY bank transfers; ¥770–¥1,018 for convenience-store deposits depending on amount
• Withdrawal fees: ¥407 for JPY; 0.001 BTC for Bitcoin
• Custody: Custodial 
• Notes: Acquired by Monex Group in 2018 following a hack that lost approximately $530 million in NEM. Beginner-friendly app and an integrated NFT marketplace, but again, custodial – assets remain under the platform’s control until you withdraw

The pattern is consistent: exchange platforms offer easy on-ramps and familiar interfaces, but they hold your keys. Ledger Wallet™ paired with a Ledger signer delivers the same buying and trading experience while keeping ownership in your hands.

Why Self-Custody Matters in Japan

Japan has had three major exchange failures, each of which reshaped the regulatory landscape:

• Mt. Gox (2014): Approximately 850,000 BTC stolen or lost. The collapse drove Japan’s original 2017 PSA licensing framework.
• Coincheck (2018): ~$534 million in NEM stolen from a hot wallet, prompting stricter custody and cold-storage requirements.
• DMM Bitcoin (May 2024): 4,502.9 BTC (~$305 million) stolen through a social-engineering attack later attributed by the FBI and Japan’s National Police Agency to the North Korea-affiliated TraderTraitor group. DMM Bitcoin shut down and transferred customer accounts to SBI VC Trade in March 2025.

Each of these exchanges was licensed and regulated. Regulation reduces some risks, but it cannot eliminate the structural reality that custodial platforms hold private keys on behalf of users, which makes them concentrated targets.

Self-custody removes that concentration. When your private keys sit on a Ledger signer, no exchange failure can lock your assets in administration, no remote attacker can drain them without first compromising your specific device, and no third party can freeze your account.

How Ledger Fits: Signer Plus Wallet

Ledger is built as two parts that work together. The Ledger signer is the physical device that stores your private keys offline and signs transactions only after a physical confirmation. Ledger Wallet™ is the software interface where you manage accounts, buy, sell, swap, stake, and connect to crypto apps and services.

Because the signer never exposes private keys to the internet, malware on your phone or laptop cannot extract them. Each transaction appears in full on the device’s screen through Clear Signing, so you can verify exactly what you are approving before pressing the physical button. Transaction Check adds a simulation layer that flags known scam patterns before you sign. The result is a setup where security and usability move together rather than in opposition.

For Japanese users, the practical advantage is that the entire journey buying with yen, holding, swapping, staking, – happens through one secure interface, with assets that never depend on a third party’s solvency.

Where to Buy a Ledger Signer in Japan?

Ledger signers are available in Japan through several authorised retail channels.

Major electronics chains including Yodobashi Camera, Bic Camera, and Yamada Denki carry Ledger hardware wallets at their large-format stores across Japan. These are established, high-traffic retailers with broad geographic coverage. 

Ledger is also available on Amazon Japan through the official Amazon store.

As always, it is best practice to verify your purchase location against the full official list of resellers on Ledger’s website, and run the Ledger Genuine Check during setup; a cryptographic verification that confirms your device is genuine and its firmware untampered, regardless of where you bought it.

Crypto Tax in Japan

Crypto in Japan is currently taxed as miscellaneous income (雑所得, zatsu shotoku) under National Tax Agency (NTA) guidance first issued in December 2017 and updated periodically since. This income sits alongside salary, business income, and other earnings in a single progressive bracket.

Current Tax Rates

• Progressive national income tax of 5% to 45%
• Flat 10% local inhabitant tax (4% prefectural + 6% municipal)
• A 2.1% reconstruction surtax applied to the national portion
• Combined maximum: approximately 55%

For salaried employees, crypto and other miscellaneous income under ¥200,000 in a tax year may not require a separate national income tax filing though local inhabitant tax still applies. This threshold does not extend to the self-employed or those filing for medical-expense or hometown-tax deductions.

Taxable events include selling crypto for yen, trading one crypto for another, spending crypto on goods or services, and receiving rewards from mining, staking, or airdrops. Transferring crypto between wallets you control is not a taxable event.

Conclusion

Japan’s crypto landscape is one of the world’s most developed: a clear regulatory regime, deep liquidity in JPY, and a tax framework moving toward stock-equivalent treatment for major assets. That maturity makes participation easier than in most jurisdictions, but it does not solve the underlying ownership question.

Three major exchange failures in Japan, each on a licensed, audited platform, have shown that the moment crypto leaves your direct control, you depend on someone else’s security, solvency, and goodwill. Buying directly through Ledger Wallet™ skips that step. A Ledger signer paired with Ledger Wallet™ keeps your private keys offline while letting you buy, swap, stake, and explore Japanese web3 without surrendering custody.

Start small, verify every step, and treat self-custody as the default rather than the exception.

Frequently Asked Questions

Is crypto legal in Japan?

Yes. Crypto is fully legal and regulated under the Payment Services Act, with the FSA licensing all exchanges that serve Japanese residents.

Is Bitcoin legal tender in Japan?

No. Bitcoin is regulated as a “crypto-asset” payment instrument under the PSA, but only the Japanese yen is legal tender.

What is the current crypto tax rate in Japan?

Crypto gains are taxed as miscellaneous income at progressive rates up to roughly 55% (45% national plus 10% local inhabitant tax, with a 2.1% reconstruction surtax on the national portion).

When does Japan’s 20% flat crypto tax start?

The flat 20.315% rate was published in the December 2025 Tax Reform Outline, but depends on FIEA amendments passing first. The practical start date is expected to fall in 2027 or 2028 for specified crypto assets traded on FSA-registered platforms.

Is crypto mining legal in Japan?

Yes. Mining is legal and not specifically licensed, though mining rewards count as miscellaneous income for tax purposes, and Japan’s electricity costs make profitability challenging without efficient hardware.

In our series of Country Guides, Ledger Academy walks you through the steps of how to buy, sell, and hold crypto assets safely and securely in various jurisdictions across the globe. We also take a look at other aspects of crypto like NFTs, the regulatory landscape, the state of Bitcoin mining, and any potential tax implications of owning crypto. For similar guides covering other regions, check out our comprehensive crypto guides for USA, Singapore, France, and Turkey.

Disclaimer:

This article is provided for educational purpose only and does not constitute financial advice. Crypto transaction services available via Ledger WalletTM are provided by third-party providers. Ledger provides no advice or recommendations on use of these third-party services. Ledger acts solely as technology provider.