Is Buying Tether (USDT) Legal in Japan?

Yes, Japanese residents can legally buy, trade, and hold Tether (USDT). It is not legal tender under the Payment Services Act, so it cannot be used for payments.

Oversight comes from the Financial Services Agency (FSA) and the Japan Virtual and Crypto Assets Exchange Association (JVCEA). Exchanges must register as Crypto Asset Exchange Service Providers (CAESPs) and meet strict AML and KYC standards.

Investors should use FSA-licensed exchanges in Japan that list USDT or global platforms operating within local rules. Funding is done in yen through bank transfers, debit cards, or approved providers. Offshore platforms risk frozen funds and compliance issues.

How to Buy USDT in Japan

Japanese investors can buy Tether (USDT) through Bybit, one of the world’s most liquid exchanges. While not licensed by the Financial Services Agency (FSA), Bybit continues to operate in Japan and is working toward compliance.

Funding in yen is available through Bybit’s P2P marketplace, where users purchase USDT directly from verified sellers using domestic bank transfers and other approved methods. The platform offers over 2,000 assets, with strong liquidity across USDT pairs.

Step-by-step guide to buying USDT on Bybit with JPY:

1. Open an Account: Register on Bybit and complete KYC verification.
2. Select Buy Option: On P2P or One-Click Buy, choose JPY and enter the purchase amount.
3. Choose Payment Method: Pay via Japanese bank transfer or supported providers.
4. Confirm and Receive: Once payment is confirmed, USDT appears instantly in your Bybit wallet.

JPY to USDT Fees

Japanese investors converting yen (JPY) into Tether (USDT) should be aware of the main costs:

• Deposit Fees: Funding through Bybit’s P2P marketplace with domestic bank transfers is usually free or very low cost. Third-party providers or card payments can add 1% to 2%.
• Withdrawal Fees: Converting USDT back to JPY via P2P trades is generally free or minimal. Transfers to external wallets incur blockchain network fees, which vary by chain (TRC20, ERC20, etc.).
• Trading Fees: Global exchanges like Bybit charge around 0.1% per trade. On maker-taker models, maker fees are roughly 0.1% and taker fees closer to 0.2%.

Tip: To minimize expenses, use bank transfers through P2P markets and trade on exchanges with transparent fee schedules.

Best Exchanges for Buying USDT in Japan

Japanese investors can access USDT with yen deposits through several global exchanges beyond Bybit. Platforms support funding by P2P markets, bank transfers, and cards, giving traders multiple entry points.

The table below compares leading exchanges on JPY funding options, fees, and liquidity to help investors identify the most cost-efficient and reliable choice.

Tax Implications for Tether (USDT) in Japan

The National Tax Agency (NTA) treats cryptocurrencies like Tether (USDT) as taxable assets. There is no separate crypto tax law, but profits and income are taxed under existing rules. Transfers of crypto are exempt from Japan’s Consumption Tax.

• Individual Taxation: Gains from trading, swapping, or spending USDT, as well as staking or mining rewards, are classified as miscellaneous income. Rates are progressive and, with local taxes, can exceed 50%. Loss offsets are limited and cannot be applied against salary or stock gains.
• Corporate Taxation: Companies pay the standard corporate income tax on net profits. Crypto holdings must be valued at year-end using market prices if an active market exists, with unrealized gains and losses recognized.
• Consumption Tax (VAT): Crypto transfers, including USDT, are exempt from Consumption Tax under rules in place since 2017.
• Taxable Events: Taxes apply when USDT is sold for yen, exchanged for another token, used for purchases, or received as income. The taxable value is the yen price at the time of the transaction.

Individuals must file returns for the prior year between February 16 and March 15. Corporations follow standard schedules based on their fiscal year. Detailed records of all trades and conversions are required.

Final Thoughts

Buying Tether (USDT) in Japan is legal, but the safest approach is to use FSA-licensed exchanges or reputable global platforms that comply with local rules. 

Stick to yen funding through bank transfers or approved methods, compare fees carefully, and keep detailed tax records. This ensures you stay compliant while accessing USDT efficiently.