Summary
Cryptocurrency is legal in Japan, with the country implementing progressive regulations to foster innovation while ensuring investor protection. Popular payment methods include bank transfers and credit cards. The Japanese yen (JPY) is widely supported on major exchanges. The Financial Services Agency (FSA) oversees crypto regulations, implementing the Payment Services Act and the Financial Instruments and Exchange Act. Japan’s crypto market is characterized by stringent licensing requirements for exchanges and clear tax guidelines for traders. Here are the best crypto exchanges in Japan, ranked from first to last:
Best Crypto Exchanges in Japan
When considering crypto exchanges in Japan, it’s crucial to evaluate factors such as regulatory compliance, supported cryptocurrencies, and payment methods tailored to the Japanese market. The Japanese yen (JPY) is widely supported, with bank transfers being a preferred deposit method due to their reliability and lower fees compared to credit card transactions.
1. Bybit
Users:
40m
Free Demo:
Mobile App:
Bonus
$30,000
Cryptos:
600+
Leverage:
100x
Spot Fees:
0.1%
Futures Fees:
0.02%/0.055%
Pros
- Low fees
- 600+ supported crypto assets
- 100x leverage and deep liquidity
- Advanced order types and additional features
- Great 24/7 customer support
- Automated copy trading
Cons
- Regulatory uncertainty in Europe and USA
- May be confusing for beginners
- Cryptocurrency investments carry high risks
Overview
Bybit stands out as one of the most advanced crypto exchanges with deep liquidity and low fees. Bybit users can trade Spot, Futures, Options, NFTs, and even Inscriptions. Additionally, Bybit offers copy trading and bot trading to automate your income streams. Bybit copy trading is one of the best in the crypto industry.
Where Bybit excels is its derivatives platform with 320+ perpetual futures contracts and up to 100x leverage. With advanced order types such as TWAP or Iceberg orders, Bybit caters to experienced traders seeking the best options.
On the spot market, Bybit supports over 500 cryptos and up to 10x margin, making Bybit a versatile crypto exchange.
With low fees of 0.1% maker and 0.1% taker for spot trading and 0.02% maker and 0.055% taker for futures trading, Bybit has highly competitive fees. To top it all off, Bybit offers fee discounts based on your 30-day trading volume. The more you trade, the more you save.
2. MEXC
Users:
15m
Free Demo:
Mobile App:
Bonus
$20,000
Cryptos:
2400+
Leverage:
300x
Spot Fees:
0.05%
Futures Fees:
0.01%/0.04%
Pros
- Lowest Trading Fees
- 2000+ supported crypto assets
- 300x leverage and deep liquidity
- 24/7 customer support
- Best for altcoin and leverage trading
Cons
- Not available in the US
- Newly launched coins pose high risk
- May request KYC in the future
Overview
MEXC is known as the crypto exchange with the lowest fees. What makes MEXC stand out is its 0% maker fee offer, meaning you can trade without any fees. However, the spot and futures taker fees start at 0.02%. No crypto exchange can compete with the MEXC fee structure.
If you are a day trader seeking high leverage, MEXC may be one of your best options. With 300x leverage over 400 futures contracts and by far the lowest fees, MEXC is truly a day trading heaven.
Even if you are not interested in leverage trading, MEXC has you covered with over 2000 supported cryptocurrencies on the spot market. While MEXC offers tons of new altcoins, we recommend being cautious as the legitimacy of newly listed projects may be questionable.
All in all, MEXC is arguably the best option for high-frequency traders seeking low fees to get the best value for money.
3. BitFlyer
Users:
2.5M
Free Demo:
Mobile App:
Bonus:
None
Cryptos:
23+
Leverage:
2X
Spot Fees:
0.00%/0.00%
Futures Fees:
0.04%/0.04%
Pros
- Native exchange for Japan
- Well-regulated and secure
- Suitable for beginners
- Beginner and advanced platforms
Cons
- Available in limited countries
- Spreads of 0.1% to 6% included in prices, making transactions not truly fee-free
- Limited cryptocurrency options
bitFlyer Overview
bitFlyer is a prominent Japanese cryptocurrency exchange serving 2.5 million users. The platform offers futures trading with 2x leverage and provides a mobile app for on-the-go trading. bitFlyer implements KYC procedures to ensure regulatory compliance in its operational jurisdictions.
While bitFlyer advertises zero spot trading fees, users should be aware of spreads ranging from 0.1% to 6.0% included in displayed prices. Futures trading incurs a 0.04% fee. The exchange prioritizes security and is designed with beginner-friendliness in mind.
bitFlyer’s strengths include its status as a native Japanese exchange, high level of regulation, and focus on security. However, the platform has limitations. It operates in a limited number of countries and offers a restricted selection of cryptocurrencies for trading. Additionally, bitFlyer does not provide a demo account for users to practice trading strategies risk-free.
4. Bitunix
Users:
2m
Free Demo:
Mobile App:
Bonus:
$10
Cryptos:
200+
Leverage:
Not Supported
Spot Fees:
0.15%/0.25%
Futures Fees:
Not Supported
Pros
- 350+ assets
- Deep liquidity & Low Fees
- Up to 100x leverage
- No KYC required
- Advanced order types
Cons
- No staking products
- Relatively new platform
- No Demo trading offered
Bitunix Overview
Bitunix is an exchange that is recognized worldwide with 1+ million users around the globe. The exchange is also commended for its standard fees. It charges a minimal fee of 0.06% and 0.02% taker and maker for futures trading, and a 0.1% maker/taker fee for spot trading.
What makes Bitunix a great place for traders is its accessibility due to its no KYC policy. Users from all around the world can sign up on the platform without having to verify their identity.
With 300+ cryptocurrencies for users to select from, Bitunix provides a user-friendly platform with a good number of products and services available. The platform is also widely celebrated for its trading interface for both spot and futures traders, with up to 125x leverage on trades. It also offers USDT-margined perpetual futures as the major derivatives trading product.
The exchange offers several payment methods for customers, such as credit/debit cards, Fatpay, Coinify, Apple Pay, and bank transfers. Additionally, there are welcome bonuses available to new users on Butunix up to $5,500 based on trading activity.
5. Gate.io
Users:
30m
Free Demo:
Mobile App:
Bonus:
$200
Cryptos:
2100+
Leverage:
150x
Spot Fees:
02%
Futures Fees:
0.015%/0.05%
Pros
- 2100+ supported cryptos
- Very comprehensive crypto exchange
- Copy trading allowed
- 150x leverage
- Fiat deposit methods
Cons
- Lacks advanced features
- Very high spot trading fees
- Poor liquidity
- Very complicated to use
Gate.io Overview
Gate.io is a true powerhouse for altcoin traders with its massive support for over 2100 cryptocurrencies. If you are an altcoin trader, Gate.io will be your new home.
Founded in 2013, Gate.io has established itself as a trusted name in the crypto industry, serving millions of users across more than 130 countries.
With a wide array of trading options, including spot, futures, options, and decentralized finance (DeFi) products, Gate.io caters to both novice and experienced traders. The exchange supports over 2000 cryptocurrencies and consistently ranks among the top exchanges by trading volume.
Beyond trading, Gate.io offers additional services like staking, lending, and an NFT marketplace. With its user-friendly interface, competitive fees, and commitment to compliance with global regulations, Gate.io continues to be a go-to destination for cryptocurrency enthusiasts worldwide.
Spot trading fees on Gate.io start at 0.2% for makers and takers, while futures fees start at 0.02% for makers and 0.05% for takers.
Is Crypto Legal and Regulated in Japan?
Cryptocurrency is legal in Japan, with the country implementing a comprehensive regulatory framework to govern its use and trade. The primary regulatory body overseeing cryptocurrencies in Japan is the Financial Services Agency (FSA). In 2017, Japan became one of the first countries to recognize Bitcoin as legal tender through the implementation of the Payment Services Act.
The FSA requires cryptocurrency exchanges operating in Japan to obtain a license, ensuring compliance with strict anti-money laundering (AML) and know-your-customer (KYC) regulations. In 2019, Japan further strengthened its regulatory framework by amending the Financial Instruments and Exchange Act and the Payment Services Act, introducing more stringent requirements for customer protection and cybersecurity measures.
Japan’s proactive approach to cryptocurrency regulation has created a balanced environment that fosters innovation while prioritizing investor protection. The country’s regulatory clarity has attracted both domestic and international crypto businesses, solidifying Japan’s position as a leading hub for cryptocurrency activities in Asia.
Is Crypto Taxable in Japan?
Cryptocurrency is indeed taxable in Japan, with the National Tax Agency (NTA) providing clear guidelines on how crypto assets should be reported and taxed. As of the 2023 tax year, cryptocurrency gains are classified as “miscellaneous income” and are subject to progressive tax rates ranging from 5% to 45%, plus a 10% local inhabitant tax.
For instance, annual crypto gains between 1.95 million and 3.3 million yen are taxed at 10%, while gains exceeding 40 million yen face the maximum rate of 45%. It’s important to note that crypto-to-crypto trades are also considered taxable events in Japan, requiring meticulous record-keeping of all transactions.
The Japanese tax system allows for the offsetting of losses from other income sources against cryptocurrency gains, potentially reducing the overall tax burden. However, crypto losses cannot be carried forward to future tax years, unlike some other types of capital losses.
Disclaimer:
Tax laws are subject to change, and individual circumstances may vary. It is strongly advised to consult with a qualified tax professional or financial advisor for personalized guidance on cryptocurrency taxation in Japan.
How to Buy Crypto in Japan
Purchasing cryptocurrency in Japan is a straightforward process, thanks to the country’s well-regulated market and numerous licensed exchanges. For Japanese residents, we recommend using Bybit due to its compliance with local regulations, competitive fees, and user-friendly interface. Whether you’re interested in buying Bitcoin, Ethereum, or other popular cryptocurrencies, follow these steps to get started:
- Choose a Crypto Exchange: Opt for a well-known exchange, such as Bybit, that is licensed by the Financial Services Agency (FSA). Ensure that it supports your preferred payment methods and adheres to KYC (Know Your Customer) regulations.
- Register and Verify Your Identity: Sign up on the selected exchange and go through the identity verification process. You’ll need to provide identification documents like a government-issued ID and proof of address.
- Deposit Japanese Yen (JPY): Fund your account using JPY. Common payment methods in Japan include bank transfers (furikomi), which usually have lower fees, or credit card deposits for quicker transactions.
- Select a Cryptocurrency: Pick the digital currency you want to purchase, such as Bitcoin (BTC), Ethereum (ETH), or stablecoins like Tether (USDT) or USD Coin (USDC).
- Make Your Trade: Place either a market or limit order for your chosen cryptocurrency. Be sure to review the transaction details, including any applicable fees, before confirming the purchase.
- Securely Store Your Funds: Once you’ve made the purchase, move your cryptocurrency to a secure wallet. For long-term storage, consider using a hardware wallet for added protection.
By following these guidelines and using a regulated exchange, you can safely and efficiently purchase cryptocurrency in Japan while complying with local laws.
Best Crypto Wallets in Japan
Selecting a secure crypto wallet is crucial for Japanese cryptocurrency users. Here are some top wallet options that cater to various needs:
- Ledger: Known for its robust hardware wallets, Ledger offers cold storage solutions like the Nano S and Nano X, providing offline security for long-term hodlers.
- Trezor: Another reputable hardware wallet brand, Trezor’s Model T and Model One are popular among Japanese crypto enthusiasts for their security features and user-friendly interface.
- Trust Wallet: A mobile wallet supporting multiple cryptocurrencies, Trust Wallet is favored for its ease of use and integration with decentralized applications (DApps).
- Exodus: This desktop and mobile wallet offers a sleek interface and supports a wide range of cryptocurrencies, making it suitable for users with diverse portfolios.
- MetaMask: Popular among DeFi users in Japan, MetaMask is a browser extension and mobile wallet that provides easy access to Ethereum-based applications and tokens.
When choosing a wallet, consider factors such as security features, supported cryptocurrencies, and ease of use. For large holdings, combining a hardware wallet for long-term storage with a software wallet for daily transactions can provide an optimal balance of security and convenience. Always ensure you’re downloading wallet applications from official sources and follow best practices for securing your private keys.
Bottom Line
For cryptocurrency enthusiasts in Japan, the market offers a blend of regulatory clarity and diverse trading options. Among the best crypto exchanges in Japan, Bybit stands out for its robust security measures, competitive fees, and wide range of supported assets. For those seeking an alternative, MEXC provides an extensive selection of cryptocurrencies and innovative features. Both platforms comply with local regulations, ensuring a secure trading environment for Japanese users. Whichever exchange you choose, remember to prioritize security, conduct thorough research, and adhere to tax reporting requirements to navigate the Japanese crypto landscape effectively.
