{ "jurisdiction_id": "JP", "jurisdiction": "Japan", "url": "https://cryptoassets.gi/jurisdictions/japan/", "generator": "render_jid v13.3.0", "date_modified": "2026-08-17", "schema_version": "crypto-v2.0.0", "counts": { "modules": 8, "sourced_findings": 25, "source_register": 38 }, "modules": [ { "code": "crypto_licensing", "name": "Crypto Licensing", "confidence": null, "moved_this_cycle": false, "url": "https://cryptoassets.gi/jurisdictions/japan/#crypto-licensing-crypto-licensing", "standing_position": "Core exchange-registration duty under the Payment Services Act is settled and in force. The July 2026 FIEA/PSA amendments enact a reclassification from payment-tool to investment-product regulatory framing, expected effective FY2027 (exact date unpublished). Custodian-registration and exchange liability-reserve sub-regimes remain proposed and unenacted.", "findings": [ { "finding": "Financial Services Agency and Local Financial Bureau before offering exchange services in Japan", "instrument_type": "exchange", "source": "Crypto-Asset Exchange Service Providers", "source_url": "https://www.fsa.go.jp/en/regulated/licensed/en_kasoutuka.pdf", "source_tier": "1", "retrieved_at": "2026-08-03" }, { "finding": "New FIEA-based regime expected to take effect in fiscal year 2027 (exact commencement date not yet published)", "instrument_type": "law", "source": "FIEA/PSA amendments (Diet, July 2026)", "source_url": "https://www.coindesk.com/policy/2026/07/15/japan-reclassifies-crypto-as-a-financial-asset-paves-way-for-tax-cuts", "source_tier": "4", "retrieved_at": "2026-08-03" }, { "finding": "Japanese authorities before offering services to exchanges (FSA proposal, not yet enacted)", "instrument_type": "custodian", "source": "Third-party crypto custody / trading-management service providers", "source_url": "https://www.theblock.co/post/378128/japan-new-rule-crypto-custody", "source_tier": "4", "retrieved_at": "2026-08-03" }, { "finding": "liability reserves against hack/operational-failure losses, via a bill planned for the 2026 ordinary Diet session", "instrument_type": "regulator", "source": "Financial Services Agency (FSA)", "source_url": "https://www.theblock.co/post/380286/japan-crypto-exchange-reserve-mandate", "source_tier": "4", "retrieved_at": "2026-08-03" } ] }, { "code": "token_classification", "name": "Token Classification", "confidence": null, "moved_this_cycle": false, "url": "https://cryptoassets.gi/jurisdictions/japan/#token-classification-token-classification", "standing_position": "PSA Article 2(5) 'Crypto-Asset' taxonomy remains current and in force for Bitcoin, Ether and similar assets, focused on intermediary rather than issuer regulation. ~105 named assets are enacted for reclassification as FIEA financial products (effective FY2027, final list pending). Stablecoins classified separately as Electronic Payment Instruments since 2023 (confidence capped at Probable pending re-sourcing to primary FSA text). NFTs conferring goods/services rights fall outside the Crypto-Asset definition (non-normative boundary statement).", "findings": [ { "finding": "'Crypto-Assets', with the regulatory framework focused on intermediaries and no direct issuer regulation", "instrument_type": "protocol", "source": "Bitcoin and Ether (crypto-assets)", "source_url": "https://www.fsa.go.jp/inter/etc/20220914-2/02.pdf", "source_tier": "1", "retrieved_at": "2026-08-03" }, { "finding": "FIEA, subjecting them to new issuer disclosure and insider-trading rules", "instrument_type": "protocol", "source": "~105 named cryptoassets (incl. Bitcoin, Ether)", "source_url": "https://www.coindesk.com/policy/2026/06/11/japan-passes-sweeping-bill-regulating-crypto-like-stocks-with-lower-taxes-to-drive-growth", "source_tier": "4", "retrieved_at": "2026-08-03" }, { "finding": "'Electronic Payment Instruments' under Japanese law, distinct from the general Crypto-Asset category, following the 2023 PSA amendment", "instrument_type": "none", "source": "Stablecoins", "source_url": "https://www.theblock.co/post/404212/japans-three-megabanks-stablecoin-march-2027", "source_tier": "4", "retrieved_at": "2026-08-03" }, { "finding": "principally confer rights to goods/services rather than function as a payment/investment instrument", "instrument_type": "none", "source": "NFTs not qualifying as PSA Crypto-Assets", "source_url": "https://www.fsa.go.jp/en/news/2025/20250410_2/01.pdf", "source_tier": "1", "retrieved_at": "2026-08-03" } ] }, { "code": "on_chain_activity_regime", "name": "On-Chain Activity Regime", "confidence": null, "moved_this_cycle": false, "url": "https://cryptoassets.gi/jurisdictions/japan/#on-chain-activity-regime-on-chain-activity-regime", "standing_position": "No dedicated statutory regime yet covers DEX trading, staking, validator operation or mining; FSA's 2025 discussion paper flags these as future areas of attention without a rulemaking timeline. DEX/non-custodial-wallet transactions are not subject to the exchange-registration regime (coverage gap, negative finding). Validator/MEV conduct distinguished from front-running at a discussion-paper level (Uncertain).", "findings": [ { "finding": "the statutory registration regime applicable to exchange service providers, though the FSA anticipates future regulatory attention", "instrument_type": "none", "source": "DEX transactions via non-custodial wallets", "source_url": "https://www.fsa.go.jp/en/news/2025/20250410_2/01.pdf", "source_tier": "1", "retrieved_at": "2026-08-03" }, { "finding": "typically do not enter contractual relationships with exchange-service-provider users", "instrument_type": "none", "source": "Validators / MEV-related conduct", "source_url": "https://www.fsa.go.jp/en/news/2025/20250410_2/01.pdf", "source_tier": "1", "retrieved_at": "2026-08-03" } ] }, { "code": "stablecoin_regime", "name": "Stablecoin Regime", "confidence": null, "moved_this_cycle": false, "url": "https://cryptoassets.gi/jurisdictions/japan/#stablecoin-regime-stablecoin-regime", "standing_position": "2023 PSA 'Electronic Payment Instruments' framework underpins stablecoin issuance by registered providers and banks (confidence capped at Probable pending re-sourcing). Bank-issued deposit-type stablecoins carry deposit-insurance-analogous protection. FSA reserve-asset-bond consultation for trust-structure issuers under Act No. 66/2025 closed 27 Feb 2026 with outcome unpublished. Megabank (MUFG/SMBC/Mizuho) joint stablecoin pilot targets live transactions during FY2026 (through March 2027).", "findings": [ { "finding": "the 'electronic payment instruments' concept introduced by the 2023 PSA amendments", "instrument_type": "issuer", "source": "Registered service providers and banks", "source_url": "https://www.theblock.co/post/404212/japans-three-megabanks-stablecoin-march-2027", "source_tier": "4", "retrieved_at": "2026-08-03" }, { "finding": "eligible foreign-issued bonds (minimum credit rating, outstanding-issuance thresholds) as stablecoin issuer reserve assets under trust structures pursuant to Act No. 66 of 2025, running through 27 February 2026", "instrument_type": "regulator", "source": "Financial Services Agency (FSA)", "source_url": "https://www.theblock.co/post/387171/japan-bonds-stablecoin-reserves-consultation", "source_tier": "4", "retrieved_at": "2026-08-03" }, { "finding": "deposit insurance in a manner analogous to conventional bank deposits", "instrument_type": "issuer", "source": "Banks issuing stablecoins as deposits", "source_url": "https://www.fsa.go.jp/en/news/2025/20250410_2/02.pdf", "source_tier": "1", "retrieved_at": "2026-08-03" }, { "finding": "live transactions during fiscal year 2026 (through March 2027)", "instrument_type": "issuer", "source": "MUFG, SMBC, Mizuho (Japan's three megabanks)", "source_url": "https://www.theblock.co/post/404212/japans-three-megabanks-stablecoin-march-2027", "source_tier": "4", "retrieved_at": "2026-08-03" } ] }, { "code": "consumer_protection", "name": "Consumer Protection", "confidence": null, "moved_this_cycle": false, "url": "https://cryptoassets.gi/jurisdictions/japan/#consumer-protection-consumer-protection", "standing_position": "Settled statutory/self-regulatory consumer-protection baseline: custody segregation and terms-explanation duties, price-volatility risk disclosure, and JVCEA-supervised advertising/solicitation rules are all in force. FSA is preparing (not yet enacted) a mandatory exchange liability-reserve regime following the 2024 DMM Bitcoin hack, overlapping with the crypto_licensing module's parallel reserve-mandate claim.", "findings": [ { "finding": "explain terms to users and segregate user assets held by the provider", "instrument_type": "exchange", "source": "Crypto-asset exchange service providers", "source_url": "https://www.fsa.go.jp/en/news/2025/20250410_2/01.pdf", "source_tier": "1", "retrieved_at": "2026-08-03" }, { "finding": "'Rules on Solicitation and Advertisement, etc. Pertaining to the Crypto-Asset Exchange Services', supervised by the FSA", "instrument_type": "regulator", "source": "Japan Virtual and Crypto assets Exchange Association (JVCEA)", "source_url": "https://www.fsa.go.jp/common/law/guide/kaisya/e016.pdf", "source_tier": "1", "retrieved_at": "2026-08-03" }, { "finding": "crypto-asset prices are not necessarily stable, under advertising/solicitation regulations", "instrument_type": "exchange", "source": "Crypto-asset exchange service providers", "source_url": "https://www.fsa.go.jp/inter/etc/20220914-2/02.pdf", "source_tier": "1", "retrieved_at": "2026-08-03" }, { "finding": "liability reserves to compensate users for losses from hacks or operational failures, following the 2024 DMM Bitcoin hack", "instrument_type": "regulator", "source": "Financial Services Agency (FSA)", "source_url": "https://www.theblock.co/post/380286/japan-crypto-exchange-reserve-mandate", "source_tier": "4", "retrieved_at": "2026-08-03" } ] }, { "code": "tax_treatment", "name": "Tax Treatment", "confidence": null, "moved_this_cycle": false, "url": "https://cryptoassets.gi/jurisdictions/japan/#tax-treatment-tax-treatment", "standing_position": "Current miscellaneous-income tax treatment of individual crypto profits (progressive rates to 55%, no loss offset/carry-forward) remains in force. July 2026 legislation establishes the basis for a flat ~20% rate with three-year loss carry-forward targeted for January 2028; Challenger hard-flag capped confidence at Probable given sole T4 trade-press sourcing and unconfirmed Cabinet Office implementation timing.", "findings": [ { "finding": "miscellaneous income at progressive rates reaching up to 55%, without offset against other income or loss carry-forward", "instrument_type": "none", "source": "Crypto profits (individuals)", "source_url": "https://www.coindesk.com/business/2025/11/21/japanese-bitcoin-treasury-firms-keep-beating-btc-tax-policy-makes-outperforming-u-s-peers-the-easy-part", "source_tier": "4", "retrieved_at": "2026-08-03" }, { "finding": "approximately 20% (15% national + 5% local) with three-year loss carry-forward, expected to take effect January 2028", "instrument_type": "law", "source": "Crypto asset gains (post-reform)", "source_url": "https://www.theblock.co/post/408361/japan-passes-key-bill", "source_tier": "4", "retrieved_at": "2026-08-03" } ] }, { "code": "cross_border_transfer", "name": "Cross-Border Transfer", "confidence": null, "moved_this_cycle": false, "url": "https://cryptoassets.gi/jurisdictions/japan/#cross-border-transfer-cross-border-transfer", "standing_position": "Travel-rule notification obligation for cross-border cryptoasset/EPI transfers is settled and in force. FSA finalized a 7 July 2026 update expanding the travel-rule equivalent-jurisdiction list by five jurisdictions (selected as top-level lead signal). Standing sanctions-screening directive (2022) and April 2026 FEFTA real-estate reporting extension to crypto-funded transactions by non-residents round out the module.", "findings": [ { "finding": "originator/beneficiary information at the time of cross-border transfer of cryptoassets or electronic payment instruments (travel-rule notification obligation)", "instrument_type": "exchange", "source": "Crypto-Asset Exchange Service Providers and Electronic Payment Instruments Service Providers (VASPs)", "source_url": "https://www.fsa.go.jp/en/news/2026/20260707/20260707.html", "source_tier": "1", "retrieved_at": "2026-08-03" }, { "finding": "jurisdictions with regulations equivalent to Japan's travel-rule requirements; FSA finalized an update on 7 July 2026 adding five jurisdictions", "instrument_type": "regulation", "source": "FSA travel-rule equivalent-jurisdiction scope", "source_url": "https://www.fsa.go.jp/en/news/2026/20260707/20260707.html", "source_tier": "1", "retrieved_at": "2026-08-03" }, { "finding": "conduct asset transactions with sanctioned targets, as part of measures to prevent sanctions evasion via digital assets", "instrument_type": "regulator", "source": "FSA and Ministry of Finance", "source_url": "https://www.coindesk.com/policy/2022/03/28/japan-to-plug-loophole-to-prevent-russia-from-evading-sanctions-through-crypto", "source_tier": "4", "retrieved_at": "2026-08-03" }, { "finding": "Foreign Exchange and Foreign Trade Act (FEFTA) reporting obligations when non-residents acquire real estate using cryptoassets", "instrument_type": "regulator", "source": "FSA, Ministry of Finance, MLIT, National Police Agency", "source_url": "https://www.fsa.go.jp/en/conference/minister/2026/20260428.html", "source_tier": "1", "retrieved_at": "2026-08-03" } ] }, { "code": "aml_cft_regime", "name": "AML/CFT Regime", "confidence": null, "moved_this_cycle": false, "url": "https://cryptoassets.gi/jurisdictions/japan/#aml-cft-regime-aml-cft-regime", "standing_position": "AML/CFT obligations for JP crypto VASPs are subscribed-surface content owned by the Financial Integrity Module; crypto carries disambiguation context only and performs no independent illicit-finance analysis this cycle.", "findings": [ { "finding": "the fleet's Financial Integrity Module (FIM) aml_ctf subscription; no independent aml_cft_regime claims are emitted in this crypto baseline", "instrument_type": "regulation", "source": "Crypto AML/CFT regime (JP)", "source_url": "https://www.fsa.go.jp/en/news/2026/20260707/20260707.html", "source_tier": "1", "retrieved_at": "2026-08-03" } ] } ] }