Japan Cracks Down on Cryptocurrency Real Estate Transactions

The Japanese government has taken a significant step to curb potential illicit activities in the real estate market by involving cryptocurrency. In a joint warning, four key agencies – the Financial Services Agency, Ministry of Land, Infrastructure, Transport and Tourism, National Police Agency, and Ministry of Finance – have requested stricter checks on property deals that involve cryptocurrency payments.

The warning emphasizes the ease with which cryptocurrency can facilitate money laundering due to its ability to move funds quickly across borders without bank scrutiny. Real estate transactions involving high-value assets are particularly vulnerable to illicit activities, as they provide a convenient means to launder large sums of money and convert them into legitimate assets.

To address this concern, the government has introduced new reporting rules for foreign buyers purchasing property in Japan. From April 1, 2026, non-resident buyers must file a report after making a purchase. Additionally, anyone in Japan who receives cryptocurrency worth over ¥30 million (approximately $200,000) from overseas must also report it to the authorities.