Japan has had a long relationship with cryptocurrency. After all, the creator of Bitcoin, Satoshi Nakamoto is believed to be Japanese. The country, however, has been slow in the acceptance of cryptocurrency. A Statista survey, for example, revealed that only about 4% of Japanese residents used cryptocurrencies.
The regulatory environment in Japan, however, is one of the most stable and well-defined in the world. This stability has immensely helped crypto projects grow in the country. At the same time, many international exchanges have also started operating in the country after meeting the requirements set by the Japanese regulators.
However, sometimes when you have too many choices, it can become confusing. We have, therefore, compiled this guide about the best cryptocurrency exchanges in Japan. But remember that best is subjective and this is not a substitute for advice from a qualified professional.
Top 5 Crypto Exchanges Working in Japan
There are a lot of platforms for cryptocurrency trading in Japan. Let us look at some of the major ones in the country.
Binance
Binance, as an exchange, has a lot to offer to its customers. While it is mainly known for its low fees and huge collection of cryptocurrencies, it also has several other features that will make you sit up and take notice.
Binance Earn gives you the opportunity to put your idle crypto assets to use and earn some passive income in return. Binance Pay helps businesses accept payments in crypto and you can also explore the world of NFTs on Binance. There is also ample learning material for you to learn more about cryptocurrencies and blockchain technology.
Features
✔️Holds 350+ cryptocurrencies for trading
✔️Utility token known as Binance Coin(BNB)
✔️2-factor authentication(2FA) is mandatory
✔️Largest cryptocurrency exchange in the world
Pros and Cons
✅Variety of tradable coins ❌Cluttered layout
✅Supports many order types ❌System hacks and regulatory problems
✅KYC is compulsory
✅End-to-end encryption for data
Trading Fees
Customer Reviews
Why We Picked It
Binance is the number one exchange for a reason. It offers many options to immerse yourself in the crypto world. Multiple transaction types supported by the platform combined with the low fees and numerous payment options make it a worthwhile experience.
Bybit
You should check out Bybit if you are interested in trading derivatives. Here, you can use stablecoins such as USDT and USDC as collateral for perpetual contracts. And not just derivatives, it also has ample cryptocurrencies available for spot trading. Further, there are spot grid bots that are capable of executing trades on your behalf.
If you’re not interested in any of that, you can simply buy cryptocurrency with your fiat money using a debit or credit card. Bybit also has an NFT marketplace where you check out and trade NFTs made by creators from all over the world.
Features
✔️Holds 270+ spot assets
✔️Focuses on derivatives trading
✔️Stablecoins as collateral for perpetual contracts
✔️Has an NFT marketplace
Pros and Cons
✅Slick design ❌Unverified trading volume stats
✅Advanced analysis tools
available
✅Supports multiple languages
✅VIP levels with added benefits
Trading Fees
Customer Reviews
Why We Picked It
Do check out Bybit if you want to trade derivatives and want the security and protection of a centralized exchange. The trading fees are negligible as you rise up the VIP ranks and its range of advanced tools would be appreciated by senior traders.
Crypto.com
Crypto.com is the right fit for people who prefer trading crypto from their mobile phones. Singapore-based Crypto.com has an excellent app with interesting and expanding features. Apart from 250+ cryptocurrencies for trading, it also has a sizeable number of assets available for staking with sizeable returns.
Crypto.com Pay helps you pay for transactions with your crypto and you can also receive cashback and rewards for the same. It has a native token CRO that you can stake and get discounts on the trading fee as per the amount staked by you.
Features
✔️Focuses on app-based trading
✔️Hosts over 250 cryptocurrencies for trading
✔️Utility token known as Cronos(CRO)
✔️Offers a DeFi wallet to explore DApps
Pros and Cons
✅Wide variety of coins ❌Requires prior experience with crypto trading
✅Hardy security system ❌Unimpressive FAQ section
✅Prepaid Visa card
✅Discounts on trading fees
by staking CRO
Trading Fees
Customer Reviews
Why We Picked It
If you like the convenience of trading from anywhere with your mobile phone, then Crypto.com is the way to go. It has developed its platform to provide a holistic app-based trading experience. Along with the exchange and app, Crypto.com offers a whole range of products such as a Visa Card and a DeFi wallet.
Bitbank
Bitbank is another good option for the residents of Japan. It is a simple and secure platform that mainly caters to the Japanese market. This is evidenced by the fact that it charges a $100 commission for registering foreign traders on the platform.
Bitbank primarily facilitates cryptocurrency to Japanese Yen(JPY) trades though it can also be used for crypto-to-crypto trades. There is no deposit fee and the taker fee is nominal. Additionally, Bitbank has over 60 analysis tools to help you make a full and thorough market price analysis.
Features
✔️Mainly for crypto traders in Japan
✔️27 cryptocurrencies available
✔️Facilitates crypto-to-JPY trades
✔️Largest domestic exchange
Pros and Cons
✅Home-grown exchange ❌Limited cryptocurrencies available
✅Offline wallets for crypto
storage
✅Supports JPY
✅Advanced analysis tools
Trading Fees
Customer Reviews
Why We Picked It
Bitbank is a well-known native Japanese exchange. Its biggest advantage is the low taker fees that it charges. This exchange also offers many analysis tools for a full market price analysis. It uses multisig technology and cold wallets for the security of user assets.
BitFlyer
BitFlyer is a prominent Japanese exchange that is known for having the largest Bitcoin trade volume in Japan. This platform charges zero fees for buying or selling cryptocurrencies. It has a simple and intuitive interface that helps beginners ease themselves into crypto trading.
The biggest advantage of BitFlyer though is that it keeps all the user funds in cold storage which is completely offline and secure. If you want, you can also set up recurring buys for daily, weekly, monthly or bi-monthly transactions. There is a BitFlyer Lightning platform with lower fees and more advanced tools as well for more experienced traders.
Features
✔️19 cryptocurrencies available
✔️Default and Lightening platform
✔️Largest BTC trade volume in Japan
Pros and Cons
✅No fees on crypto buy/sell ❌Low number of available coins
✅Cold storage for assets ❌No staking program
✅User-friendly design
✅Recurring buy to automate
transactions
Trading Fees
Why We Picked It
BitFlyer is a home-grown exchange with free crypto buy/sell feature. It is a beginner-friendly platform where you can start trading with as little as a 1 JPY investment. It also has a Lightning platform that caters to the needs of more advanced traders.
Top 5 Decentralized Exchanges in Japan
There are traders who prefer retaining their privacy while trading crypto. If you are one of them, you would perhaps prefer using a decentralized exchange(DEX) over a centralized one.
UniSwap
UniSwap is generally the name that comes up first when we talk about DEXs. And that’s for a good reason. UniSwap’s entire process of creating liquidity pools and providing liquidity is completely automated and thus, more immune to manipulation attempts and system attacks.
The pool fee on UniSwap is divided into three tiers of 0.05%, 0.30% and 1%. The fee is charged depending on the “nature” of the being traded. You can use this exchange with any major crypto wallet like Metamask, Trust Wallet or Coinbase wallet.
Features
✔️Platform developed on Ethereum
✔️Implement Automated Market Maker(AMM) system
✔️Utility token known as UNI
✔️Three pool fee tiers
Pros and Cons
✅Easily navigable interface ❌High Ethereum gas fees has to be paid
✅Compatible with major crypto ❌Delayed transactions
wallets
✅Variety of ERC-20 tokens
✅Community governance
Trading Fees
Customer Reviews
Why We Picked It
UniSwap is one of the largest DEXs with high liquidity and a minimalist and easy to navigate interface. It is one of the few DEXs that we can positively say are beginner-friendly. Also, it lets the user base have a voice in how the platform is governed via the UNI token.
PancakeSwap
PancakeSwap is a BNB Chain-developed DEX that is very similar to UniSwap. But PancakeSwap has an edge over the latter by the virtue of not being an Ethereum network DApp. This is because it helps the platform avoid issues such as network congestion and delayed transactions.
PancakeSwap is compatible with pretty much all mainstream crypto wallets and has some ingenious products that are bound to catch your fancy. It charges a standard 0.25% fee per trade which is neither very high nor very low.
Features
✔️Platform developed on BNB Chain
✔️Implements AMM protocol
✔️Utility token known as CAKE
✔️Yield farms for asset staking
Pros and Cons
✅Variety of BEP-20 tokens ❌Fiat money not supported
✅Attractive design and layout ❌Faces problem of widespread scams
✅Works with several common
crypto wallets
✅Democratic governance
Trading Fees
Customer Reviews
Why We Picked It
Simply put, PancakeSwap makes trading fun. The fees charged here are standard but the yield farms including the syrup pool offer some good returns on your assets. It has an innovative product suite that you’ll definitely find worth checking out.
dYdX
If you want a DEX that specializes in derivatives trading, dYdX is the right option. It is an Ethereum-based platform that has managed to set up fast trades with its Layer 2 solutions.
dYdX also gives you the benefit of free trades up to $100,000. While trades beyond that are charged maker and taker fees, the rates are not very high and again, ultra high-volume trades are completely free.
Features
✔️Specializes in derivatives trading
✔️Utility token known as DYDX token
✔️Uses StarkWare’s Layer 2 solution
Pros and Cons
✅Swift transactions ❌Unimpressive number of trading
✅No wait time for withdrawals pairs
✅No maker-taker fee up to $100,000
Trading Fees
Why We Picked It
dYdX is a good platform for trading derivatives due to its extremely low fees and dynamic interest rates. It is known for its fast transaction settlements and secure and private trading experience.
Curve Finance
Curve Finance has some amazing liquidity pools that can give you pretty good returns both in the short and long run.
Generally though, Curve Finance is preferred by people that want to deal in stablecoins on a platform with high liquidity and stability. It even has a native token CRV and you can get to participate in the platform’s governance if you hold this token.
Features
✔️Primarily for stablecoin swaps
✔️Utility token known as CRV
✔️Liquidity pools that are customizable
Pros and Cons
✅Works with most major ❌Trading from mobile not possible
chains ❌Not for inexperienced traders
✅Low-risk platform
✅Get good returns for providing
liquidity
Trading Fees
Why We Picked It
Utilized smartly, Curve Finance can give you handsome returns in the short as well as the long term. It has reduced slippage and is actually quite a stable platform since it mainly provides liquidity for stablecoins.
DODO
DODO as a relatively new exchange tries to set itself apart from its competitors. It does so by employing the Proactive Market Maker(PMM) protocol that helps it maintain more price stability and liquidity on the platform. A key part of it is using oracles to act as a link between blockchains and real-time data.
On DODO, any person, if they possess a crypto wallet, can create a liquidity market. This is done with the assistance of the DODO Vending Machine. There are private pools available for more advanced traders and a native DODO Coin which enables you to participate in Initial DODO Offerings(IDOs).
Features
✔️Platform developed on the Ethereum network
✔️Implements PMM system
✔️Utility token known as DODO Coin
Pros and Cons
✅Allows cross-chain trading ❌Lesser used platform
✅Zero impermanent loss
✅Freedom to make liquidity market
Trading Fees
Why We Picked It
If you want to try out something new, DODO is the place to go. It has eliminated the limitations of AMM by going for the PMM protocol. Listing coins here is very easy and it has a number of features like DODO Vending Machine, private pools and NFT Vault that set it apart from similar exchanges.
Is Cryptocurrency Legal in Japan?
In Japan, cryptocurrencies are regulated as per their “characteristics”. While most utility tokens like BTC and ETH are classified as crypto assets and regulated by the Payment Services Act(PSA); tokens that represent shares, bonds etc. are classified as security tokens and regulated under the Financial Instruments and Exchange Act(FIEA).
The PSA directs that cryptocurrency and cryptocurrency exchanges in Japan would be regulated by the Japanese Financial Service Agency(FSA). The FSA, in turn, is assisted by the Japan Virtual Currency Exchange Association(JVCEA) and the Japan Security Token Offering Association(JSTOA) for this.
Registration with the FSA is mandatory for cryptocurrency exchange prior to starting operations. Note here that cryptocurrency derivatives exchanges are not regulated under the PSA but the FIEA.
Further, crypto exchanges in Japan need to comply with all Anti-Money Laundering(AML) regulations as specified in the Act on the Prevention of Transfer of Criminal Proceeds(APTCP).
Both permanent and non-permanent residents have to pay taxes on crypto assets. While non-permanent residents pay a flat 20% tax on all income earned, citizens have to pay tax on income from crypto trading, BTC mining and DeFi lending. The tax rate can range from 5% to 45% on profits but the final amount paid depends on the individual’s income tax bracket.
Therefore, while there are no restrictions on cryptocurrency trading or ownership in Japan, the authorities are aware of the risks posed by cryptocurrencies and have been tightening norms defining standards that cryptocurrency service providers need to possess. They have also started regulating exchanges more rigorously after several breaches and heists.
Conclusion
The Japanese population has slowly but steadily started getting on the crypto train. The clear guidelines and the stable environment in the country are big factors responsible for this. Therefore, traders in Japan can choose any exchange that fits their criteria from the number of options available to them.
The main thing that you need to remember is that cryptocurrencies are volatile and risky assets. Hence, you need to do proper research and introspect about your investment goals and evaluate your risk tolerance before plunging into crypto trading.