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.
| Status | Legal |
| Risk Score | 25/100 (Low Risk) |
| Region | asia pacific |
| Currency | JPY |
| Adoption Rank | #18 |
| 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 Crypto | No |
| Staking Tax | Taxed as miscellaneous income |
| Airdrop Tax | Taxed 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.
| Required | Yes |
| Regulator | FSA |
| Framework | Payment Services Act (PSA) and Financial Instruments and Exchange Act (FIEA) |
| Ease | medium |
| 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.
Status: regulated
DeFi activities fall under existing financial regulations and are subject to AML and licensing requirements where applicable.
Status: regulated
Stablecoins are regulated under the PSA and must comply with licensing and AML requirements.
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.
| Legal | Yes |
| Electricity | $0.162/kWh |
| Renewable | 22% |
| Infrastructure | excellent |
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.
| Stability | stable |
| Sanctions | No |
| Corruption Index | 73/100 |
| Banking Access | moderate |
Last reviewed: 2026-04-13 · Data source: Soken Crypto Legal Map
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