Japanese license for a crypto exchange: Strict standards, global opportunities
Japan continues to hold a leading position in the regulation of cryptocurrencies and the operation of cryptocurrency exchanges. This jurisdiction is known for its well-structured regulatory framework, detailed requirements, and transparent licensing procedure, which is considered one of the most accessible and valuable. A crypto license in Japan allows your company to officially provide digital asset and trading services, as well as develop innovative financial solutions for clients both inside the country and abroad.
Japan’s approach to regulating crypto business is based on the following key principles:
- strict compliance with anti-money laundering (AML) and know-your-customer (KYC) policies;
- continuous government oversight of licensed crypto companies;
- ensuring reliable and secure management of users’ funds;
- adherence to high standards in risk management;
- requirements for transparent financial reporting and internal controls.
Operating in the Japanese jurisdiction provides access to a mature, stable market that is at the forefront of blockchain technology development, the creation of secure asset storage solutions, and investor protection. After obtaining a crypto license, companies benefit from clear regulatory guidelines, a streamlined registration and approval process, and ongoing engagement with an active and competent regulator.
What the license allows: List of permitted operations with crypto assets in Japan
Obtaining a license to conduct cryptocurrency-related activities in Japan grants your company the right to operate across a wide range of regulated digital asset transactions. These activities strictly comply with the applicable legal and regulatory standards of the Japanese jurisdiction, which is known for its high level of regulation and transparency. The main licensing criteria ensure the ability to provide safe, legally compliant, and supervision-ready services both domestically and internationally.
A crypto license in Japan covers the following types of permitted activities:
- operation of centralized and decentralized cryptocurrency exchanges enabling trading both between fiat currencies and cryptocurrencies, and between crypto asset pairs;
- provision to clients and institutional investors of digital asset custody services as well as cryptocurrency wallets;
- facilitation of money transfers, payment processing, and cross-border transactions;
- organization of issuance, management, and storage of crypto assets and tokens based on blockchain platforms;
- performing the functions of a Virtual Asset Service Provider (VASP), including interaction with DeFi projects, implementation of innovative financial solutions, and management of smart contracts;
- providing professional advice on compliance with legal requirements, including AML, KYC, and ongoing compliance monitoring;
- consulting on applications and registrations for new entrants considering entering the Japanese market;
- legal support as well as risk management to protect both the company and its clients.
All such activities are carried out under the jurisdiction of the Japanese regulator, with mandatory compliance with the established standards. Licensed crypto companies are required to maintain a high level of transparency, undergo regular audits, and ensure the ongoing security of operations.
| Activity | Permitted under the license |
| Cryptocurrency/fiat currency exchange | Yes |
| Cryptocurrency trading | Yes |
| Wallet services and asset custody | Yes |
| Payment solutions and money transfers | Yes |
| Blockchain and token management | Yes |
| Compliance, AML, and KYC | Yes |
| DeFi and smart contracts | Yes |
| Corporate consulting and registration | Yes |
| Risk management and legal support | Yes |
Having a license for a Japanese cryptocurrency exchange means that your business can confidently operate in a regulated, secure, and promising market.
Advantages of the Japanese jurisdiction for obtaining a cryptocurrency license
Japan offers a number of significant advantages for companies and entrepreneurs seeking to obtain a license to operate a crypto exchange. Japan’s national legislation positions the country among the world leaders in cryptocurrency and blockchain regulation, providing a strictly regulated and highly developed environment for the provision of financial services. The Japanese jurisdiction attracts both international corporations and dynamic startups, as well as existing VASPs.
Key advantages of the Japanese jurisdiction:
- Robust legal and regulatory framework
Japan is distinguished by a well-developed regulatory regime for cryptocurrency exchanges, including mandatory compliance standards and licensing procedures. The national regulator plays an active supervisory role and ensures transparency in all processes. - Reputation and market access
Obtaining a crypto license in Japan significantly enhances business reputation and client trust. It allows immediate entry into one of the most advanced and demanding financial markets. Japan actively attracts institutional investors and innovative fintech projects thanks to its authority in the field of digital finance. - Client protection and security
The Japanese jurisdiction implements a multi-level system for safeguarding client funds and digital assets. The regulator exercises active oversight, providing clear legal guarantees. Strict AML/KYC requirements are observed at all stages of licensing and registration, reducing risks and strengthening trust. - Tax advantages and financial clarity
Japan offers a clear tax policy and a reasonable level of corporate taxation. Foreign companies can benefit from simplified accounting and recognized income reporting methods, enabling efficient capital management while complying with regulatory norms. - Transparency in the application and registration process
The application and registration procedure in Japan is clearly regulated. Applicants have access to professional support from licensed consultants, and feedback and assistance are provided by the Japanese regulator at all stages of interaction.
Thanks to the combination of regulatory stability, reputational value, legal guarantees, and procedural transparency, Japan remains one of the most attractive jurisdictions for obtaining a crypto business license.
| Advantage | Benefit for the company |
| Strict regulation | Market trust, compliance with requirements |
| Security and protection | Reduced risks, increased client trust |
| Market access | Entry into Japanese and Asian markets |
| Tax transparency | Predictable business costs |
| Process efficiency | Fast registration and approval |
Operating under a Japanese crypto license means joining a respected, innovative, and well-regulated digital space with broad opportunities for business growth and global expansion.
Obtaining a crypto license in Japan with the support of Prifinance is a comprehensive and well-managed process, fully compliant with Japanese legal standards. We ensure the preparation of all necessary documentation, support in interactions with regulatory authorities, and adherence to AML/KYC obligations, allowing the client to focus on business development.
Our team works with professional consultants in Japan, ensuring accuracy, transparency, and compliance at every stage of the licensing process. We accompany the client from the first consultation to crypto license issuance and subsequent regulatory compliance.
Why Japan: comparing jurisdictions for a cryptocurrency license
When choosing a jurisdiction for licensing a crypto exchange, it is worth comparing Japan with such hubs as Singapore, Estonia (EU/MiCA), and the USA. These countries offer different approaches to regulation, taxation, and compliance.
Japan’s main advantage is its high level of legal protection, operational transparency, and clear regulation. Unlike some other jurisdictions where crypto licenses may be absent or limited, Japan provides legal certainty, client protection, and trust from institutional partners.
| Criterion | Japan | Singapore | Estonia (EU/MiCA) | USA |
| Regulatory environment | Strict, innovative | Rigorous, modern | Harmonized, detailed | Complex, fragmented |
| Licensing process | Transparent, efficient | Multi-stage, lengthy | Multi-stage, clear | State-dependent |
| Tax regime | Predictable, corporate | Moderate to high | Moderate to high | High/varied |
| Legal protection | Strong, reliable | High | High | High |
| Compliance requirements | Reliable, ongoing | Very strict | Strict (MiCA) | Mixed: state/federal |
| Market access | Japan and Asia | Asia-Pacific region | Pan-European market | USA only |
| AML/KYC standards | Integrated, mandatory | Mandatory | Mandatory | Mandatory |
| Regulator support | Active, responsive | Structured | Variable | Variable |
Unlike jurisdictions such as the USA or Singapore, where the licensing process involves more complex and costly requirements, the Japanese system offers clearly defined application rules, active support from the regulatory authority, and consistent review within formalized procedures.
The MiCA regime in Estonia provides the opportunity for pan-European operations; however, it may be less accessible to new market entrants due to certain institutional and administrative barriers.
A crypto license in Japan gives your business direct access to one of the most developed and technologically advanced crypto markets in the world, as well as to a regulator with a solid reputation and a high level of legal certainty for operating a cryptocurrency exchange.
Requirements for obtaining a cryptocurrency license in Japan
To obtain a license for operating a crypto exchange in Japan, an organization must meet an extensive list of legal, financial, and regulatory requirements. Japanese law establishes a strictly structured procedure aimed at protecting client interests, ensuring operational security, and maintaining the integrity of the financial market.
Key requirements include:
- Company registration and legal structure
The applicant must register a legal entity in Japan, submit a complete set of incorporation documents, disclose information on beneficiaries and shareholders, and appoint qualified directors and founders. - Capital and financial stability
The company must deposit the required minimum share capital into an account in a Japanese bank and demonstrate sufficient resources for stable business operations. - Compliance, AML, and KYC policies
The licensed entity must implement and maintain strict internal policies for regulatory compliance, including full AML and KYC controls, transaction monitoring, regular audits, and an effective risk management system. - Application and supporting documents
The application must include a detailed business plan, IT and information security policies, legal compliance procedures, and other documentation as requested by the regulator. - Qualified personnel and management
The company must appoint experienced directors, certified compliance officers, and form a team in line with VASP standards. All key staff must be approved by the Japanese regulatory authority as fit for their respective roles. - Periodic reporting and audit
Licensed crypto companies are required to submit regular reports with transparent accounting to the regulator, as well as undergo mandatory annual audits of their activities.
Meeting all of the above standards is an essential condition for obtaining and maintaining a crypto business license in the Japanese jurisdiction.
| Requirement | Description |
| Company registration | Legal entity, directors, ownership structure, corporate documents |
| Capital requirements | Minimum deposit, bank account, proof of funds |
| Compliance, AML, and KYC | Policies, monitoring, audit, risk management |
| Qualified management | Directors, certified compliance specialists |
| Application and documents | Business plan, IT policies, legal and regulatory documentation |
| Ongoing reporting and audit | Accounting, periodic audits, transparency |
Meeting these standards ensures that your cryptocurrency company will hold a reputable license in the Japanese jurisdiction, trusted by clients, investors, and the global market.
Registration of a crypto company in Japan: Stages and timelines for obtaining a license
The process of obtaining a crypto license to operate a crypto exchange in Japan is strictly regulated, transparent, and consistent, and is under constant supervision by the competent authorities. All crypto companies applying for a license must comply with established standards, prepare documentation correctly, and act in full accordance with Japanese law.
- Preliminary consultation and planning
At this stage, it is recommended to engage accredited professional consultants to assess the business model, analyze key requirements, and develop a detailed action plan for preparing and submitting the application. - Company registration and capital placement
A legal entity must be register in Japan, a bank account opened with a local bank, and the minimum share capital required for companies dealing with digital assets deposited. - Preparation and submission of the application
The document package must include a business plan, IT and information security protocols, internal legal compliance policies, as well as fully developed AML/KYC control mechanisms. Additional documents may be requested depending on the Japanese regulator’s requirements. - Application review and due diligence
The Japanese regulatory authority conducts a comprehensive review of the submitted materials, performs due diligence on each director and beneficial owner, and examines the internal risk management and compliance policies. - Final approval and license issuance
Upon completion of all procedures and fulfillment of all conditions, the company receives official approval, a crypto business license, and the legal right to operate in accordance with Japanese law.
While the procedure requires a significant amount of time and strict compliance with all standards, the result is a reliable legal foundation for operating in one of the most advanced crypto markets in the world.
| Stage | Estimated duration |
| Consultation and planning | 1–2 weeks |
| Company registration | 1–2 weeks |
| Application submission | 1 week |
| Review and verification by regulator | 4–6 weeks |
| Approval and license issuance | 1–2 weeks |
| Total duration | 8–12 weeks |
Engaging specialized consultants with experience in the Japanese jurisdiction significantly simplifies the completion of all licensing stages and contributes to faster receipt of the necessary regulatory approval.
It is critically important to prepare the full set of documentation in advance and ensure the transparency of all submitted materials, this is a key factor for the timely issuance of the crypto license.
The Japanese regulator provides support throughout the entire process, offering applicants legal clarifications and methodological guidance, which helps ensure more precise compliance with all legal standards.
Taxation of cryptocurrency companies in Japan
Japan has a transparent and detailed taxation system that applies to all crypto business operators, including exchanges and companies working with digital assets. The Japanese jurisdiction establishes clear tax obligations, enabling both local and international companies to meet fiscal standards with full legal certainty.
Key features of the tax system:
- Corporate tax on cryptocurrency-related income
All licensed crypto companies that earn income from digital asset trading and other cryptocurrency operations are subject to corporate tax at established rates. The clarity and stability of the tax rate allow crypto companies to forecast their fiscal burden, manage expenses efficiently, and develop long-term financial planning. - Capital gains tax on digital asset transactions
Profits derived from cryptocurrency transactions and sales of digital assets are subject to capital gains tax. This applies to both Japanese and foreign investors. The obligation to pay depends on the transaction volume and the legal structure of the crypto company conducting the trading activity. - Exemption from consumption tax (VAT)
Most spot cryptocurrency transactions are exempt from consumption tax (similar to VAT), reducing the tax burden for companies providing crypto exchange services to clients. - Strict requirements for tax reporting and compliance
Cryptocurrency companies are subject to specific rules regarding tax law compliance and reporting. Companies must maintain detailed accounting records, undergo audits, and submit reports to regulatory authorities, ensuring compliance with all tax and corporate governance standards. - International double taxation avoidance agreements
Japan has signed agreements with a number of countries to prevent double taxation of income from cross-border transactions. With the right corporate structure, such agreements can help optimize the taxable base for international deals.
In this way, Japan’s tax system creates favorable and predictable conditions for crypto companies while ensuring strict oversight of tax compliance.
| Tax feature | Benefit for the company |
| Corporate income tax | Predictable business expenses |
| Capital gains tax | Clear rules for asset trading |
| VAT exemption | Reduced costs for crypto operations |
| Double taxation avoidance agreements | Global tax efficiency |
| Compliance and reporting | Full legal transparency |
Operating in the Japanese zone provides your cryptocurrency company with a regulated tax environment, transparent reporting, and a solid foundation for international growth and financial stability.
Brief overview of what you need to know when obtaining a crypto license
The table below provides a summary of the key aspects of obtaining a cryptocurrency license in Japan. The information covers the main legal, regulatory, and organizational factors that crypto companies face when entering the Japanese digital asset market. This table helps quickly assess the standards, licensing features, and advantages of the Japanese jurisdiction.
| Category | Fact |
| Jurisdiction | Strictly regulated, with transparent requirements |
| License type | Cryptocurrency license (including VASP, DeFi, custody, etc.) |
| Regulator | Japan Financial Services Agency (JFSA) |
| Legal form | Japanese legal entity |
| Minimum capital | Required deposit of established capital into a Japanese bank account |
| Application documents | Business plan, AML/KYC, IT and compliance policies, ownership structure |
| Personnel qualification | Appointment of directors and compliance officers approved by the regulator |
| AML/KYC | Strict requirements, ongoing monitoring and audit |
| Reporting and audit | Annual audit, regular reporting to the regulator |
| Timeframe for obtaining | Stages from planning to license — strictly sequential with checks |
| Taxation | Corporate tax, capital gains tax, VAT exemption |
| International advantages | Double taxation avoidance agreements |
| Key benefits of the license | Legal certainty, client protection, access to an advanced market |
Your legal partners in the licensing process
The Prifinance team consists of specialists with in-depth knowledge of international financial and cryptocurrency regulation, including the complex licensing processes in strictly regulated jurisdictions such as Japan. We understand the specific standards of the Japanese regulator and know how to build legal solutions that meet not only formal criteria but also the expectations of supervisory authorities.
Our experts support projects at every stage: from company structuring and documentation preparation to regulatory approvals and post-licensing support. We work for results, ensuring our clients have a confident and compliant presence in international cryptocurrency markets.
Nikolai Timofejev Expert with 15 years of experience in FinTech, payments, and business strategy.
Oleksii Kindratenko Expert in company registration, financial licenses, AML and tax consulting.
Eugeniu Bevziuc International business consultant with experience in company setup, remote work, and multilingual communication.
Want to enter Japan’s regulated crypto market – without risks and bureaucracy?
We will provide full legal support and guide you all the way to obtaining your crypto license.
Frequently asked questions about a cryptocurrency license in Japan
- What does cryptocurrency license in Japan mean?
It is an official authorization from the Japanese regulator to carry out activities related to the exchange, trading, and provision of services in the field of digital assets within Japan. - What types of activities are permitted under this crypto license?
The license allows for cryptocurrency exchange and trading operations, custody of digital assets, provision of crypto wallets, payment solutions, and participation in blockchain transactions. - What are the basic requirements for submitting an application?
You must register a legal entity in Japan, deposit the minimum share capital into a local bank account, provide the required set of documents, and have well-developed internal AML, KYC, and compliance policies. - How long does it take to obtain a crypto license after submission?
The application review process generally takes from 8 to 12 weeks. The duration depends on the completeness and accuracy of the submitted documents, as well as the decisions of the regulatory authority. - What are the tax obligations for cryptocurrency companies in Japan?
Companies must pay corporate income tax on cryptocurrency-related income and capital gains tax on digital asset trading. Most spot cryptocurrency transactions are exempt from consumption tax (VAT). - Is AML and KYC compliance mandatory?
Yes. All licensed crypto companies must implement and adhere to AML/KYC procedures and general regulatory compliance standards. - Can foreign shareholders or beneficiaries be company founders?
Yes, foreign individuals may own the company; however, they are subject to disclosure, due diligence, and additional regulation by Japanese authorities. - What documents are required when applying for a crypto license?
The package includes company registration documents, business plan, proof of capital, IT and information security policies, data on directors, and an internal compliance manual. - Which authority supervises cryptocurrency exchanges in Japan?
Licensed activity is overseen by the Japanese regulator responsible for supervising cryptocurrency exchanges and VASP service providers. - Why choose Japan for obtaining a cryptocurrency license?
Japan offers a stable legal framework, a reputable regulator, a transparent licensing procedure, access to a mature market, and international recognition for cryptocurrency companies.
