Best Crypto Exchanges in Japan

Best Cryptocurrency Exchanges in Japan

We have tested and reviewed the 28 cryptocurrency platforms accessible from Japan and found the best overall options based on several key factors. This assessment considered compliance with Japan’s Financial Services Agency (FSA), pricing, JPY deposit options, available digital assets and features. Below is a comparison table of the top 5 exchanges for Japanese investors.

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1. Bybit

‍Bybit is a highly popular crypto exchange in Japan, known for its vast selection of over 1,500 cryptocurrencies for spot, futures, and options trading. It offers advanced trading tools with up to 200x leverage on more than 400 derivatives contracts. The platform has over 54 million customers worldwide, supports JPY deposits and can be used in Japanese and 20 other languages.

Bybit goes beyond basic trading with features like copy trading, lending, staking, trading bots, NFT trading, and a Launchpad. Users can access demo accounts and use the AI-driven TradeGPT for market insights. Additionally, the platform provides complete transparency in its assets through regular reserve audits, reassuring users that their funds are backed on a 1:1 basis.

• Fees: Spot trading fees start at 0.1%, with futures maker fees at 0.02% and taker fees at 0.055%.
• Supported Assets: Over 1,500 cryptocurrencies.
• Regulation and Licensing: Approved by the Financial Services Agency (FSA).‍
• JPY Deposit Methods: Bank transfers, JCB cards, PayPay, Line Pay, Google Pay, credit card, debit card E-Check and Apple Pay.

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2. Bitget

Bitget is popular for its copy trading features that let users follow top traders for automated strategy execution. It provides access to over 800 cryptocurrencies and leverage up to 125x on futures contracts. The platform sees over $23 billion in daily trading volume and supports a global network of more than 180,000 elite traders for bot, spot and derivatives copy trading.

It offers a full suite of trading tools, including futures, spot, and margin trading, as well as advanced bot trading options. Its Web3 wallet and Launchhub make it easy for users to interact with decentralized applications and new crypto projects. Bitget also has a robust Proof of Reserves, regularly updated to ensure transparency. It also provides live customer support in Japanese.

• Fees: Spot trading starts at 0.1%; futures maker and taker fees are 0.02% and 0.06%.
• Supported Assets: Over 800 cryptocurrencies.
• Regulation & Licensing: Globally compliant and available for Japanese users.
• JPY Deposit Methods: Bank transfers, credit cards, and debit cards.

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3. bitFlyer

bitFlyer is the oldest crypto exchange in Japan, holding the title of the largest Bitcoin trading platform in the country by volume from 2016 to 2021. The platform is known for its zero-fee trading on the main marketplace (bitFlyer Buy/Sell). Its advanced security measures and no-hack track record over seven years have built trust, ensuring that user funds are securely stored in cold wallets.

In addition to standard trading, bitFlyer offers advanced tools through its Lightning platform, allowing sophisticated traders to execute complex strategies with various order types. The platform also supports dollar-cost averaging, crypto credit card, opportunities to earn BTC, a T-Point exchange for Bitcoin and provides a seamless user experience on mobile and desktop.

• 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. KuCoin

KuCoin is a top choice in Japan for investors seeking a diverse range of altcoins, offering access to over 700 digital assets. It supports spot, margin, and futures trading, along with advanced features like lending and staking. Its 100x leverage option for futures appeals to experienced traders, and the platform’s competitive fees make it a popular choice in Japan.

Additional features on KuCoin include copy trading, KuCard, trading bots, OTC desk and the Spotlight feature. It also offers a comprehensive suite of security protocols, including multi-layered asset protection and a robust Proof of Reserves. KuCoin’s user-friendly app and multiple JPY funding options enhance its accessibility for Japanese traders.

• Fees: Spot trading starts at 0.1%, futures maker and taker fees at 0.02% and 0.06%.
• Supported Assets: Over 700 cryptocurrencies.
• Regulation & Licensing: Operates globally and is accessible to Japanese users.
• JPY Deposit Methods: Bank transfers, credit cards, and Apple Pay.

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5. DMM Bitcoin

DMM Bitcoin is a beginner-friendly platform designed for Japanese users, offering two trading modes in its mobile app: ST mode, tailored for new traders who prefer straightforward spot trading, and EX mode, which provides a full suite of features for advanced trading. The platform supports 38 cryptocurrencies for leveraged trading, including major assets like Bitcoin.

The platform has a zero-fee structure on basic services, covering account opening, deposits, and withdrawals. Account setup is streamlined, and users can complete their identity verification in minutes using DMM Bitcoin’s “Speedy Identity Verification via Smartphone” service. Unfortunately, it was recently hacked for $400, but the exchange reported no customer funds were lost.

• Fees: No fees on spot or leveraged trades; 0.04% daily fee for carried-over leveraged positions.
• Supported Assets: Offers 38 cryptocurrencies.
• Regulation & Licensing: Licensed by the Kanto Regional Financial Bureau, compliant with Japan’s FSA.
• JPY Deposit Methods: Bank transfers and quick deposits from partner banks.

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Is Crypto Regulated in Japan?

Japan’s cryptocurrency regulation is led by the Financial Services Agency (FSA), which keeps a close watch on exchanges and investor protection. The FSA is now considering updates to its framework, exploring whether to reclassify crypto under investment laws instead of the Payment Services Act. This change could allow domestic funds to invest in digital assets and may lead to lighter tax rates on crypto profits.

Japan’s crypto rules enforce strict Know Your Customer (KYC) and Anti-Money Laundering (AML) standards, with additional oversight from the Japan Virtual Currency Exchange Association (JVCEA). Licensed exchanges follow a detailed compliance process, though upcoming changes in 2024 may simplify some of these requirements. 

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How is Crypto Taxed in Japan?

In Japan, crypto tax rules are defined and overseen by the National Tax Agency (NTA). Cryptocurrencies are classified as "miscellaneous income," which means that profits from trading, mining, or staking are subject to progressive income tax rates, ranging from 5% to 45%, depending on one’s income bracket. Non-permanent residents face a flat 20% tax on all crypto earnings.

Any gains exceeding ¥200,000 in a tax year must be reported, and taxpayers need to carefully document transaction details, including acquisition costs and sales prices, to calculate accurate capital gains. Tax reporting in Japan involves detailing all crypto transactions on annual tax returns, with emphasis on complete documentation for transparency. 

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How to Buy Bitcoin in Japan

Japanese investors looking to purchase Bitcoin must use an exchange regulated by the Financial Services Agency (FSA) that supports JPY deposits. Here’s a summary of the registration and investment process:

1. Create an Account: Start by signing up on a reputable exchange. You'll need to provide basic information like your name and email. Before trading, the platform will require you to verify your identity with a government-issued photo ID, such as a passport or driver’s license.
2. Deposit Funds in JPY: Head to the deposit section of your account dashboard, enter the amount of Japanese yen (JPY) you wish to transfer, and select your preferred payment method. 
3. Search for Bitcoin: Navigate to the trading section, where you can search for Bitcoin by typing “BTC.” Choose the JPY/BTC pair and enter the specifics of your transaction.
4. Execute the Trade: Click the "buy" or "trade" button to complete your purchase. Enter the desired amount of Bitcoin and execute the trade.

Following these steps on a FSA-compliant exchange allows Japanese users to confidently buy Bitcoin, staying within regulatory guidelines and protecting their investments.

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Bottom Line

Selecting the best crypto exchange in Japan comes down to individual trading needs and priorities. We recommend choosing platforms that prioritise strong security, regulatory compliance, and a wide selection of supported cryptocurrencies, including Bybit, Bitget, bitFlyer, KuCoin, and DMM Bitcoin.

These exchanges offer distinctive features tailored to different skill levels, providing Japanese investors with secure options to confidently explore cryptocurrency.