Best Crypto Exchanges in Japan

Best Cryptocurrency Exchanges in Japan

‍After a thorough review of the 27 digital asset trading platforms available in Japan, we have identified the top options for residents. Our evaluation emphasized their adherence to Japan's Financial Services Agency (FSA) regulations, supported cryptocurrencies, JPY deposit options, features and services, and fee structures. Below is a detailed comparison table of the top five exchanges for Japanese investors.

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1. Bybit

Bybit is the best overall crypto exchange in Japan as the interface can be used in Japanese, and local customer support is available. It offers more than 1,200 cryptocurrencies to buy and trade on spot markets, plus hundreds of futures and options contracts with leverage of up to 100x. There are over 32 million users and a daily trading volume exceeding $25 billion.

It offers straightforward onboarding with local JPY deposit options, including bank transfers, JCB cards, and Line Pay. The exchange also provides lending and borrowing options, staking features, copy trading services, an NFT marketplace, and a crypto card. Bybit ensures transparency through regular reserve audits, reassuring users that their funds are backed on a 1:1 basis. 

• Fees: Maker fee of 0.02% and taker fee of 0.055% for futures trading. Spot markets are 0.1%.
• Supported Assets: Over 1,200 digital assets.
• Regulation & Licensing: Approved by the Financial Services Agency (FSA).‍
• JPY Deposit Methods: Bank transfers, JCB cards, Line Pay, Google Pay, credit card, debit card and Apple Pay.

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2. Kraken

Kraken is a good option for institutional investors in Japan, known for its advanced trading features and robust security measures. The platform offers over 250 cryptocurrencies and high liquidity for large trades. Its institutional services include dedicated account management and professional trading tools for users opening trades above $100,000.

In addition to spot trading, Kraken provides futures and margin trading with up to 5x leverage. The exchange maintains strict regulatory compliance and advanced security protocols, including two-factor authentication and cold storage of assets. Kraken's interface is user-friendly, supporting both beginner and advanced traders.

• Fees: Maker fees set at 0.01% and taker fees at 0.02%.
• Supported Assets: Over 200 spot and 100+ margin trading options.
• Regulation & Licensing: Complies with Japanese regulations and available in the country.‍
• JPY Deposit Methods: Bank transfers, credit cards, debit cards and wire services (e.g. SWIFT).

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3. bitFlyer

bitFlyer is Japan’s leading exchange and the first one to receive registration with the FSA. Based in Tokyo, it is regarded for its ease of use and strong regulatory compliance. The platform supports 19 cryptos for spot and margin trading. It provides two tailored trading experiences: the normal exchange for beginners and the advanced BitFlyer Lightning for more sophisticated trading strategies.

The exchange also provides a user-friendly interface suitable for beginners, along with educational resources to help new traders. It broadens its appeal with innovative features, including the unique crypto credit card, opportunities to earn BTC, and a T-Point exchange for Bitcoin. 

• Fees: A flat rate of 1,000 JPY for deposits and withdrawals, with a trading and swap fee of 0.2%.
• Supported Assets: 19 cryptocurrencies.
• Regulation & Licensing: bitFlyer is stringently regulated in Japan and is a Platinum member of the Japan Blockchain Association (JBA).‍
• JPY Deposit Methods: Bank transfer, credit cards, debit cards, convenience store (Konbini) payments, and Line Pay.

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4. DMM Bitcoin

DMM Bitcoin offers a straightforward and user-friendly platform ideal for beginners in Japan. The exchange supports only four cryptocurrencies but provides both spot and leveraged trading options. It is known for its intuitive interface and 24/7 customer support, which is available via live chat, email, and phone.

Security is a top priority, with features like two-factor authentication and cold storage of assets. The platform also offers educational resources to help new users understand the basics of cryptocurrency trading. Although there is not a wide range of assets, users can benefit from the feature-rich platform.

• Fees: 2% fees for spot trading, 0.04% for leveraged trading.
• Supported Assets: 4 digital assets.
• Regulation & Licensing: Fully licensed by the FSA.
• JPY Deposit Methods: Bank transfers, credit cards and electronic payments.

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5. Gate.io

Gate.io is popular for its diverse selection of cryptocurrencies, making it a popular choice in Japan. The platform supports more than 2,100 digital assets and offers various trading options, including spot, margin, and futures trading with up to 100x leverage. Gate.io is also known for its competitive fees and high liquidity, with daily trading volumes exceeding $8 billion.

In addition to trading, Gate.io provides additional services such as staking, lending, and an NFT marketplace. The exchange emphasizes security with features like two-factor authentication and regular security audits. These distinctive elements provide Japanese traders with diverse market opportunities, including exclusive trading events and competitions.

• Fees: Competitive pricing structure, with maker orders starting at 0.1% and taker orders at 0.2%.
• Supported Assets: More than 2,100 digital assets.
• Regulation & Licensing: Not directly licensed in Japan but remains accessible to Japanese users.‍
• JPY Deposit Methods: Bank transfers and debit or credit cards.

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Is Crypto Regulated in Japan?

Japan has established a comprehensive framework for cryptocurrency regulation, and digital assets are regulated under the Payment Services Act (PSA). This act mandates that anyone providing Crypto Asset Exchange Services (CAES) must register with the Financial Services Agency (FSA). The FSA oversees the sector, ensuring exchanges comply with strict AML and KYC protocols. 

Recognized as a legal form of payment since 2016, Japan continues to innovate with government-issued nonfungible tokens (NFTs) and stablecoins like JPYCoin. While the stability of the yen has moderated rapid adoption, Japan's clear regulations and technological advancements provide a strong foundation for the growth of cryptocurrencies. 

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How is Crypto Taxed in Japan?

Cryptocurrency earnings are classified as “miscellaneous income” by the National Tax Agency (NTA) in Japan. Permanent residents must pay tax on income from trading, mining, and decentralized finance (DeFi) lending, with rates reaching up to 45%, depending on the income bracket. Non-permanent residents face a flat 20% tax on all crypto earnings. 

Taxes apply to any cryptocurrency transaction, including using crypto to purchase goods or services. Airdropped tokens are not taxed at the time of receipt but are taxed upon sale. The tax regime does not allow for carrying forward capital losses, and taxpayers must file returns by March 15 each year for the previous fiscal year ending December 31. 

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How to Buy Bitcoin in Japan

If you're new to cryptocurrency investment, understanding how to purchase Bitcoin through a digital asset exchange in Japan is essential. Below is a summary of the investing process:

1. Create an Account: Visit the website of a reputable exchange and register for an account. Click on "Sign Up" and complete the verification process by uploading a photo ID and, if required, a selfie or proof of address. 
2. Deposit Japanese Yen (JPY): Go to the deposit section of your account, select JPY as your deposit currency, and enter the amount you wish to transfer. Confirm and complete the transaction using your preferred deposit method, such as a bank transfer or credit card. 
3. Choose Bitcoin: Search for Bitcoin (BTC) in the trading section. Select the JPY/BTC trading pair to see the current market rate. Review the available trading options, such as market and limit orders. 
4. Execute the Trade: Click 'buy' or 'trade' to purchase Bitcoin. Enter the amount of Bitcoin you want to buy or the amount of JPY you wish to spend. Review the order details, including price and fees, then finalize the trade. 

This guide provides users in Japan with a clear path to start trading digital currencies, detailing each step from account creation to completing trades.

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Bottom Line

In conclusion, Japan's strong regulatory framework, overseen by the Financial Services Agency (FSA), ensures secure and transparent cryptocurrency trading. With platforms like Bybit, Kraken, bitFlyer, DMM Bitcoin, and Gate.io, investors have access to diverse features, services, and supported assets. These exchanges offer easy JPY deposit options, catering to both beginners and experienced traders.