Japan's Crypto Market: A Guide to Buying, Wallets, and Tax Regulations

The Japanese crypto market is one of the world's most advanced, with a comprehensive regulatory framework, deep liquidity in Japanese yen (JPY), and a tax system that treats major assets similarly to stocks. The Payment Services Act (PSA) governs crypto under Japan's Financial Services Agency (FSA), requiring exchanges serving residents to register, segregate customer funds, implement strict security measures, and comply with anti-money laundering (AML) and Know Your Customer (KYC) rules.

There are two main ways to buy crypto in Japan: through FSA-licensed exchanges or directly using a Ledger Wallet. Exchanges like bitFlyer, Coincheck, and Binance Japan offer easy on-ramps but hold users' private keys. Using a Ledger signer paired with Ledger Wallet, users can keep their assets secure while still enjoying the benefits of trading.