Japan
Region: east-asiaLegal
Cryptocurrency is legal in Japan, regulated primarily by FSA Japan. Legal. Taxed as 'miscellaneous income' at progressive rates up to 55% (including local taxes).
Regulatory Framework
Trading & ownership
Legal. Permitted through Crypto Asset Exchange Providers registered with the FSA.
Payments & Commerce
Legal. Recognized as a proprietary value or payment method under the Payment Services Act.
Mining Operations
Legal under standard commercial codes and energy laws.
Exchange Licensing & AML/KYC
Strictly required. Registration with the Financial Services Agency (FSA) is mandatory. KYC: Rigorous KYC, including identity and source of funds checks.. AML: Governed by the Act on Prevention of Transfer of Criminal Proceeds.
Taxation
Capital Gains Tax
Taxed as 'miscellaneous income' at progressive rates up to 55% (including local taxes).
Income Tax (Staking/Mining)
Staking, mining, and trading gains are grouped as miscellaneous income.
VAT & Sales Tax
Crypto transactions are exempt from consumption tax.