How To Buy Cryptocurrency In Japan

Introduction.

Cryptocurrency has become more than just a buzzword—it’s a way people are managing their money, investing, and exploring the future of finance.

If you’re living in Japan or planning to, you might be wondering how to join this digital money revolution.

Japan is one of the most crypto-friendly countries, with clear regulations and lots of options for buying and using cryptocurrencies.

Let me break it all down for you: how to get started, the platforms available, and things you should know before buying cryptocurrency in Japan.

It might seem confusing at first, but once you understand the basics, it’s pretty straightforward.

Why is Cryptocurrency Popular in Japan?

Japan has played a key role in the global crypto scene. It’s where Bitcoin was first popularized and where some of the earliest exchanges were born.

The government has embraced cryptocurrencies in a way that ensures safety for users. Since 2017, Japan has recognized Bitcoin and other digital currencies as legal payment methods.

This means there’s a solid regulatory framework in place, making it safer and easier for residents to buy, sell, and use crypto compared to many other countries. Plus, Japanese consumers love innovation, and crypto fits right into that mindset.

How Do I Buy Cryptocurrency in Japan?

Let’s get to the part you’re here for: how to buy cryptocurrency in Japan. Here’s a simple guide to follow:

1. Choose a Crypto Exchange

To start, you need to pick a platform where you’ll buy and manage your cryptocurrency. In Japan, exchanges are licensed and regulated by the Financial Services Agency (FSA), which means you’re working with legitimate businesses. Some popular exchanges include:

• bitFlyer: A user-friendly platform, great for beginners.
• Coincheck: Offers a smooth app experience and supports many coins.
• Binance Japan: A global giant that recently re-entered Japan with local compliance.
• Zaif: Known for its lower fees and a good option for more experienced users.

Each exchange has its features, so check their fees, supported coins, and interface before deciding.

2. Sign Up and Verify Your Identity

After picking an exchange, you’ll need to create an account. This involves providing some personal information and uploading identification documents.

This process, called KYC (Know Your Customer), is required by law to prevent fraud and money laundering.
You’ll typically need:

• A Japanese residence card or passport.
• Proof of address, like a utility bill.
• A selfie for identity confirmation.

It might take a few hours or days to get verified, depending on the platform.

3. Deposit Money

Once your account is ready, you’ll need to deposit money to start buying crypto. In Japan, most exchanges let you fund your account using:

• Bank transfers.
• Credit cards.
• Convenience store payments (on some platforms).

Be sure to check deposit fees and limits before transferring funds.

4. Buy Your First Crypto

Now comes the exciting part—actually buying crypto. You’ll choose a cryptocurrency (like Bitcoin, Ethereum, or others) and decide how much you want to buy. Most exchanges have easy-to-use apps or websites that guide you through this process.

Remember, you don’t have to buy a whole Bitcoin or Ethereum. You can purchase small fractions, even with just a few thousand yen.

5. Store Your Crypto Safely

After buying, you can leave your crypto in the exchange’s wallet, but I recommend transferring it to a personal wallet for better security. There are two main options:

• Hot Wallets: Apps or software wallets connected to the internet, like MetaMask or Trust Wallet.
• Cold Wallets: Physical devices like a Ledger or Trezor that store your crypto offline, making them immune to hacking.

Things to Keep in Mind

Taxes on Crypto in Japan

Cryptocurrency earnings are taxable in Japan. Any profits you make from trading or selling crypto are considered “miscellaneous income” and must be reported during tax season. Depending on your income level, taxes can range from 5% to 45%.

Fees and Costs

Exchanges charge different fees for deposits, trades, and withdrawals. Make sure you compare these before choosing a platform. For example:

• Trading fees are usually a percentage of your transaction.
• Withdrawal fees can apply when you move your crypto to another wallet.

Avoid Scams

Stick to licensed exchanges and avoid random investment schemes promising huge returns. The crypto world has its risks, and staying cautious is the best way to protect your money.

FAQs

1. Is it legal to buy cryptocurrency in Japan?

Yes, it’s completely legal. The government has strict regulations in place to protect users.

2. What’s the minimum amount I need to start?

You can start with as little as ¥1,000 (about $7), depending on the platform and the coin you’rebuying.

3. Can foreigners buy crypto in Japan?

Yes, as long as you have a valid residence card and meet the KYC requirements of the exchange.

4. Which cryptocurrencies are popular in Japan?

Bitcoin (BTC) and Ethereum (ETH) are the most popular, but others like XRP, Litecoin (LTC), and Cardano (ADA) are also widely traded.

5. Can I use cryptocurrency for payments in Japan?

Some stores and online shops accept crypto, but it’s not very common yet. It’s more popular as an investment tool.

Conclusion

Buying cryptocurrency in Japan is easier than it might seem at first. With a clear regulatory system, user-friendly platforms, and plenty of options for getting started, you’ll be ready to make your first crypto purchase in no time.

Now I’m curious—what excites you most about getting into cryptocurrency? Are you looking to invest, try something new, or explore its potential as a future payment method? Let me know!