🇯🇵 Japan

Japan has a clear and established regulatory framework for cryptocurrencies, primarily governed under the Payment Services Act (PSA) and the Financial Instruments and Exchange Act (FIEA). The country is recognized as crypto-friendly with comprehensive licensing and AML requirements.

Overview

StatusLegal
Risk Score25/100 (Low Risk)
Regionasia pacific
CurrencyJPY
Adoption Rank#18

Tax

Capital Gains (Personal)15% to 55% progressive income tax depending on income bracket
Capital Gains (Corporate)Approximately 23.2% corporate tax on crypto gains
VAT on CryptoNo
Staking TaxTaxed as miscellaneous income
Airdrop TaxTaxed as miscellaneous income

Cryptocurrency gains are taxed under income tax for individuals with progressive rates up to 55%, and corporate tax for businesses. VAT does not apply to crypto transactions. Staking and airdrops are taxed as miscellaneous income.

Licensing

RequiredYes
RegulatorFSA
FrameworkPayment Services Act (PSA) and Financial Instruments and Exchange Act (FIEA)
Easemedium
Cost$200,000 - $1,000,000

Crypto exchanges and service providers must register with the Financial Services Agency (FSA) and comply with AML/KYC regulations.

DeFi

Status: regulated

DeFi activities fall under existing financial regulations and are subject to AML and licensing requirements where applicable.

Stablecoins

Status: regulated

Stablecoins are regulated under the PSA and must comply with licensing and AML requirements.

NFTs

Status: no_rules

NFTs are generally not regulated as crypto assets unless they have payment or investment characteristics. JFSA has indicated that unique, non-fungible digital items typically fall outside the Payment Services Act scope.

Mining

LegalYes
Electricity$0.162/kWh
Renewable22%
Infrastructureexcellent

Japan has a well-developed electricity infrastructure with moderate costs and a growing renewable energy share. Mining is legal and regulated under general business laws.

Geopolitics

Stabilitystable
SanctionsNo
Corruption Index73/100
Banking Accessmoderate

Last reviewed: 2026-04-13 · Data source: Soken Crypto Legal Map

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