Bitcoin in Japan: rules, tax and how it's priced
In Japan bitcoin is quoted as the price of one whole BTC in yen (BTC/JPY), and registered exchanges let you buy fractions, so small amounts are often shown in sats (1 BTC = 100 million satoshis). The figures on this page are the international BTC/USD price converted into yen at today's exchange rate, before exchange fees, spreads and any local premium, so a Japanese exchange's quote can differ slightly.
Is bitcoin legal in Japan?
Yes. Bitcoin is legal in Japan and is regulated as a “crypto asset”, but it is not legal tender. Since 2017 exchanges serving Japanese residents have had to register with the Financial Services Agency (FSA), which publishes a list of registered crypto asset exchange service providers; the Japan Virtual and Crypto assets Exchange Association (JVCEA) acts as the industry's self-regulatory body. Crypto is currently regulated under the Payment Services Act, but that is changing. On 15 July 2026 the Diet passed amendments, promulgated on 23 July 2026, that move crypto into the Financial Instruments and Exchange Act, treating it as a financial product with insider-trading rules and issuer disclosure. Tougher penalties for unregistered operators took effect on 12 August 2026; the rest takes effect by cabinet order within one year of promulgation.
How bitcoin is taxed in Japan
For now, individuals' gains from selling bitcoin, swapping it for another crypto asset or spending it are generally treated as miscellaneous income (zatsu shotoku). This is added to your salary and other income and taxed at progressive rates, so the combined national and local rate can reach 55%. Losses cannot be offset against other types of income or carried forward. A reform enacted on 31 March 2026 will introduce separate taxation at 20% (15% national income tax plus 5% local inhabitant tax, plus the reconstruction surtax), with a three-year loss carry-forward. It will start on 1 January of the year after the Financial Instruments and Exchange Act changes take effect, which is widely expected to be 1 January 2028.
Buying bitcoin in Japan
Japanese residents buy bitcoin in yen through FSA-registered exchanges, typically funding their account by bank transfer. Exchanges must verify your identity and keep customer assets separate from their own. Before using a platform, check that it appears on the FSA's register, because the FSA regularly warns about unregistered overseas operators soliciting Japanese customers, and from August 2026 the maximum penalty for operating without registration has risen to 10 years' imprisonment. Tokens available on Japanese exchanges are more limited than abroad because new listings are reviewed under JVCEA rules. Keep records of every trade, since you need them to file a tax return.
The 2026 reform: 20% tax and crypto ETFs
The 2026 changes are the biggest overhaul of Japanese crypto rules since exchange registration began. The new 20% separate tax will apply only to “specified crypto assets” sold through, or to, a registered Japanese operator; trades on overseas exchanges, DeFi platforms and private wallets, and staking or lending income, will stay under the current regime. Gains will be filed in a tax return and cannot be netted against stock gains. Moving crypto under the Financial Instruments and Exchange Act also creates a legal basis for domestic crypto investment trusts and ETFs, but no Japanese spot bitcoin ETF had been approved as of October 2026. The exact start dates depend on cabinet orders and ministerial ordinances not yet issued.
Legal and tax information last reviewed October 2026. Crypto rules change quickly — check with the regulator or tax authority, or a qualified adviser, before acting. This is not tax, legal or investment advice.