Future Crypto News | Latest Country Updates for Crypto Currency

Japan

GDP

Population

GDP per capital

Light

Green

Banking

General adoption

The Japanese government is well ahead in the process of legalizing and regulate crypto. The Japanese Crypto Asset market has seen explosive growth since 2018. It is still changing and growing as these words are being written.

Government View

Japan was the first country in the world to have enacted a law defining “Crypto Asset” as a legal term, and requires an entity to register as a “Crypto Asset Exchange Service Provider” in order to provide Crypto Asset Exchange Services to residents in Japan. Regarding NFT, the legal status of these tokens is still unclear.

Blockchain Projects

Under the PSA (Payment Services Act), only businesses with a competent local Financial Bureau are allowed to operate as a cryptocurrency exchange, however, in keeping with Japan’s progressive stance, foreign cryptocurrency exchanges are permitted to register where they can demonstrate an equivalent registration standard in their host country.

Taxes and Regulation

Under Japanese law, sale of Crypto Assets has been subject to consumption tax in cases where the office of the transferor is located in Japan. The relevant tax rates may vary depending on how much you earned in the previous year. You could owe significantly less than the 55% maximum tax rate in your cryptocurrency gains. There is no restriction on an entity owning cryptocurrency for its own investment purposes, or investing in cryptocurrencies for its own exchange purposes.

Trading Methods

Trading

Cryptocurrencies do not fall within the definition if “securities” under the FIEA (Financial Instruments and Exchange Act). You’d be able to transfer any kind of fiat money in order to start trade with the recommended platforms above, some of those even accept bank transfers.

Privacy

Any payment or receipt of payment exceeding 30 million JPY (roughly 260k USD), either by fiat currencies or Crypto Assets, is subject to a reporting obligation to the Minister of Finance under the Foreign Exchange and Foreign Trade Act. Furthermore, both residents or non-residents which transfer the amount above from or to Japan would have to declare it.

Last Updated

Tuesday, 1 November, 2022