Is It Legal To Buy Bitcoin in Japan?
Japan, the Land of Cherry Blossoms and mind-blowing technologies, has been one of the most progressive countries in regard to regulating cryptocurrencies. It was the first country in the world to recognize Bitcoin as a legal property in 2017.
The Financial Services Agency (FSA) is the authority responsible for overseeing the cryptocurrency market all across the Japanese Islands. The Payment Services Act was enacted in 2009 to regulate the activities of payment service providers in Japan, including cryptocurrency exchanges. Under this act, cryptocurrency (Bitcoin) exchanges must register with the FSA and comply with the necessary protocols.
The legislation for Japanese crypto exchanges and retail investors is quite strict. Exchanges in Japan must meet several criteria before they can be approved by the FSA. These criteria include having proper security measures in place to safeguard users’ funds, conducting regular audits, and abiding by a robust anti money laundering (AML) and know-your-customer (KYC) policy.
The FSA has also introduced additional regulations to protect retail users. In 2018, the FSA banned privacy-focused cryptocurrencies like Monero and Zcash. The reason behind this was to prevent money laundering and other illicit activities that these cryptocurrencies could facilitate.
Cryptocurrency taxes in Japan are also regulated. The country has a progressive tax system, where the tax rate increases as income rises. Similar to miscellaneous income, which includes things like lottery winnings, gambling winnings, prizes, and awards, profits from cryptocurrency trading are subject to income tax too. The tax rate is up to 55% for those earning more than 40 million yen ($372,000) annually.
Bitcoin (BTC) was created in 2009 by a mysterious person or group using the Japanese name Satoshi Nakamoto. It is based on blockchain technology, which is a decentralized ledger that maintains a continuously growing list of records, called blocks.
One of the key features of Bitcoin is its consensus algorithm, which ensures that all participants in the network agree on the state of the blockchain. Satoshi Nakamoto's original whitepaper outlining the Bitcoin protocol has become a seminal document in the world of cryptocurrency and blockchain technology. Today, Japan is one of the largest markets for Bitcoin trading and investment, and many businesses and individuals have embraced this innovative digital currency.
Best Ways to Buy Bitcoin in Japan Safely
The Land of the Rising Sun, or Great Nihon as natives fondly dub it, Japan is known for its technological advancement and efficient financial systems. It's not surprising that the nation has wholeheartedly adopted the use of cryptocurrencies, particularly Bitcoin. However, as much as the country has a positive stance toward cryptocurrencies, it is essential for local users to know the best ways to buy Bitcoin (BTC) in Japan safely.
One of the most reliable gateways to cryptocurrency trading in Japan is regulated crypto exchanges. These platforms are licensed and monitored by the Japanese Financial Services Agency (FSA), ensuring that they adhere to strict rules and regulations. By using a regulated exchange, Japanese investors can be sure that their investments are totally safe.
Among the regulated crypto exchanges in Japan, Changelly stands out as overall the best exchange to buy Bitcoin, as well as other cryptocurrencies, with JPY (Japanese Yen). Changelly is a centralized exchange that offers great customer support that is available 24/7, hundreds of trading pairs, and the latest user funds protection measures with two-factor authentication (2FA) and SSL encryption, making it a dependable option for Japanese crypto buyers.
Changelly has a super intuitive interface, facilitating a seamless trading experience. At Changelly, we don't just make buying cryptocurrency easy, but keep it downright effortless. With over 500 digital currencies to choose from, including popular favorites like Bitcoin and Binance Coin, users can purchase digital assets with the simple swipe of their credit or debit card.
Changelly has integration with some of the top crypto exchanges in the industry, including Binance, Bitfinex, and Poloniex. This allows Changelly to access the best crypto offerings available in the market, ensuring that Japanese investors get the most value for their money.
Changelly's low trading fee structure enables Japanese traders to buy BTC without incurring significant transaction costs. Whether you are on a tight-budget or willing to buy cryptocurrency in chunky amounts, with us, you can invest in crypto in a cost-effective manner.
Although virtual currency may promise potential gains, Bitcoin trading comes with certain risks that investors should be aware of. Firstly, the price volatility of Bitcoin is a major risk factor. The value of Bitcoin tends to fluctuate wildly, sometimes within a matter of hours, meaning crypto owners can experience significant gains or losses.
Secondly, the Japanese government has implemented cryptocurrency taxes, which could affect the profitability of Bitcoin trading. Thirdly, Japan has experienced one of the largest hacks in Bitcoin history, with the Mt Gox crypto exchange losing over 850,000 Bitcoins in 2014. This was a major blow to the cryptocurrency industry in the country and highlighted the need for stronger security measures.
How to Buy Bitcoin with Credit and Debit Card
As debit and credit cards have a ubiquitous application all over the world, it’s hardly surprising that individuals are curious about how to buy Bitcoin in Japan, incorporating their plastics.
The entire process is void of any complexities. However, before diving in, you need to know that identity verification is required to comply with Japanese crypto currency regulations.
First, choose a reputable cryptocurrency exchange with a variety of payment methods and trading pairs, such as Changelly. With a properly selected platform, you can easily convert your JPY funds into the desired cryptocurrency.
Once you've pinned down a suitable company, you'll need to create an account and unleash some personal identification data for verification. This may include providing your full name, date of birth, and a government-issued ID. Some exchanges may require additional authentication details, such as proof of address and a current photo, so be sure to check the specific requirements before you can buy cryptocurrencies through a given platform.
After your identity is confirmed, you can link your credit or debit card to your exchange account. Double-check all details, including card number and billing address, to avoid any payment errors.
Now you're ready to purchase Bitcoin! Simply select how much you wish to buy and confirm your payment method. Some exchanges may have a minimum purchase limit, so be aware of any fees or limits before making your transaction.
Note that buying Bitcoin or other digital coins with a credit or debit card may come with higher fees compared to other payment methods, such as wire transfers. However, the convenience and speed of this mode may be worth the extra cost.
Before making any crypto asset purchase, always do your own research and gather info on the current crypto market trends and potential risks, so you make a well-considered investment decision.
How to Buy Bitcoin with Bank Transfer in Japan
While debit cards and other options may seem convenient, using a bank transfer can offer a range of benefits when buying Bitcoin Japan. Not only is it a more secure way to pay, but it also allows for larger transactions and typically comes with lower transaction fees. Japanese residents can follow the next steps to buy Bitcoin (BTC) with a bank transfer:
Choose a cryptocurrency exchange. You’ll need to identify a reputed online cryptocurrency exchange that allows you to trade fiat money, like JPY, for Bitcoin using a bank transfer. Some popular providers include Coinbase, Coinmama, Binance, and Coincheck.
Create an account. Once you've narrowed down a company to deal with, you'll need to set up a trading account. This usually involves providing some personal information and verifying your identity through a Know Your Customer (KYC) procedure, so your bank transfers can be processed compliantly.
Link your bank account. After getting your exchange account approved, you'll need to link your bank account. This will allow you to transfer JPY to the platform, which you can then utilize to buy Bitcoins or other crypto assets.
Initiate a wire transfer. To deposit funds to the platform, you'll need to launch a wire transfer from your bank account. Make sure you follow the exchange's instructions carefully to ensure that the transfer goes smoothly.
Buy Bitcoin. Once the JPY has been transferred to your cryptocurrency exchange, you can use the money to buy BTC. Note that each exchange has its own trading volume and trading fees, so make sure you compare the key parameters before committing.
Withdraw Bitcoins. After buying Bitcoin, you can withdraw your digital assets to your personal crypto wallet. Avoid leaving BTC on the exchange because otherwise you are entrusting your valuable assets to a third-party, which exposes your funds to higher risk of a hacker attack and other potential cyber threats.
Keep in mind that purchasing Bitcoin through bank transfers may require a bit of patience, as it could take a few days to process. To avoid any unnecessary stress, make sure you plan ahead accordingly. Remember that the value of cryptocurrencies can be quite unpredictable; conduct thorough research and only invest a sum that you're willing to part with.
How to Buy Bitcoin with Apple Pay in Japan
Apple Pay has been steadily expanding its services in Japan and the entire Asia-Pacific region. This dramatically simplifies the process of purchasing cryptocurrency in the region. Customers can make quick and encrypted transactions with their Apple devices, including iPhones, iPads, and Apple Watches through the appropriate cryptocurrency exchanges, without having to worry about security risks.
Buying Bitcoin with Apple Pay in Japan has never been easier! Thanks to Changelly, a reputable cryptocurrency exchange platform with a worldwide service, you can purchase BTC and tons of other cryptocurrencies in a matter of a few minutes.
To get started, simply install the Changelly mobile app on your iOS smartphone or tablet, undergo the necessary identity checks, and select your desired cryptocurrency, such as BTC, Binance Coin, Bitcoin Cash, or whatever you have your heart set on.
Next, choose Apple Pay as your preferred payment method and enter the amount of crypto you wish to purchase. After confirming the details, the cryptocurrency transaction will be processed nearly instantly and with the highest level of security. When you use Apple Pay to make a payment on online cryptocurrency exchanges, the transaction is validated using Touch ID, Face ID, or your device passcode. This ensures that only you can authorize cryptocurrency transactions on your device.
Apple Pay employs tokenization to protect your payment info. Instead of storing your actual card number, Apple Pay generates a unique token that is used for each transaction. This token is useless to hackers, as it cannot be incorporated to make additional transactions.
With us, you can also use Google Pay to buy Bitcoin instantly!
How to Buy Bitcoin from ATM in Japan
Crypto automated teller machines (ATMs) are the easiest way to buy and sell Bitcoin, hands down. Thanks to their cosmopolitan diffusion, Japanese crypto enthusiasts can easily purchase Bitcoin with cash, even without a bank account. Lots of crypto ATMs support debit cards as well for a truly effortless crypto buying experience.
In Japan, crypto ATMs can usually be found in major cities such as Tokyo, Osaka, and Kyoto. They are typically located in popular areas, such as shopping centers, train stations, and airports. Some of the popular crypto ATM providers in Japan include BitOcean, BTCBOX, and Coincheck. Here is a simple instruction on how to buy BTC from a crypto ATM in “the Flowery Kingdom:”
Find a Bitcoin ATM near you. You can do this by checking online or using a Bitcoin ATM locator app.
Once you have found a Bitcoin ATM, you'll need to ensure that you have a Bitcoin wallet installed on your smartphone or laptop, which will enable you to receive the digital currency.
Then, go to the Bitcoin ATM and select the "Buy Bitcoin" option. You'll be asked to enter the amount of Bitcoin you want to purchase and the ATM will scan the QR code of your address wallet.
Deposit cash or insert the debit card, depending on the features of a given machine.
Review and complete the transaction if you agree on the offered exchange rate (fiat-to-crypto).
The purchased Bitcoin will be transferred to your crypto wallet, becoming yours for whatever use.
Bitcoin ATMs may have different fees and transaction limits, so check these details before making an investment. Also, be ready to go through an identity verification procedure with most Bitcoin ATMs, especially if you are spending sizeable sums of fiat currency on purchasing crypto through a machine.
How to Buy Bitcoin with PayPal
Buying Bitcoin with PayPal in Japan can be a bit tricky, as PayPal does not offer direct support for Bitcoin transactions in the region. However, there are several alternative approaches you can consider buying BTC with your PayPal balance in Japan. One of the most popular methods is to use a peer-to-peer marketplace, such as Paxful, Bisq and HodlHodl. These trading platforms connect buyers and sellers of Bitcoin, allowing you to find someone who is willing to sell Bitcoin for PayPal.
Another path to take is to use a cryptocurrency broker that supports PayPal payments, such as eToro or Bitfinex. These trading platforms allow you to buy BTC using PayPal, but they may charge not so low trading fees compared to other payment methods.
You can also use a PayPal debit card to buy Bitcoin from some online crypto exchanges that accept debit card payments, such as Coinbase.
It's worth highlighting that buying Bitcoin with PayPal can be risky, as PayPal transactions are reversible, while Bitcoin transactions are not. When buying Bitcoin with PayPal, there is a risk that the person selling Bitcoins can claim that they never received payment, and initiate a dispute through PayPal's customer support. As PayPal transactions are reversible, the seller could potentially win the dispute, and the buyer would be left without their Bitcoin or their money. This is because BTC transactions are irreversible once they are confirmed on the Bitcoin blockchain.
Therefore, it is important to use a trusted platform when buying Bitcoin with PayPal, and only trade with individuals or businesses that have a proven track record of reliable transactions. It is also a safe bet to only trade with small amounts initially until trust has been established between both parties. For added security against PayPal’s chargebacks, opt for a reputable trading platform with an escrow service in place to protect your deals.
How to Buy Bitcoin with Prepaid Card
Buying Bitcoin with a prepaid card in Japan is a convenient and easy way to enter the world of cryptocurrency. With a trusted cryptocurrency exchange that welcomes both Japanese customers and prepaid cards, the process is really straightforward and can be done in a matter of minutes. Identity checks are generally unavoidable with this payment option, but as soon as you prove to be a compliant user, you will be able to buy cryptocurrencies with the money on your pre-loaded card.
One of the benefits of buying Bitcoin with a prepaid card is that it is a convenient and secure way to make transactions without having to link your bank account or credit card to the exchange platform. Prepaid cards can be purchased from many convenience stores in Japan using traditional money (JPY). Another advantage is that prepaid cards come with a limited balance, which can help you control your budget and avoid overspending.
How to Buy Bitcoin with Cash in Japan
Credit/debit cards, wire transfers, and cashless mobile payments are the most frequently used ways to purchase cryptocurrencies. Nevertheless, Bitcoin (BTC) can also be bought with cash, and there are different ways to do so in The Land of the Rising Sun.
Bitcoin ATMs
Japan has a network of crypto ATMs that allow users to buy cryptocurrency with cash. These terminals are easy to access and can be found in various locations across the country, including convenience stores, malls, and airports. To use a Bitcoin ATM, users need to deposit cash and scan a QR code to receive their Bitcoin.
Bitcoin Exchanges
Lots of local crypto exchanges in Japan allow users to buy popular coins and tokens with cash deposits, including BitFlyer, BitoPro Japan, and Huobi Japan. Users can go to the exchange's website and select the option to deposit cash. They can then complete the deposit at a nearby bank branch and receive Bitcoins in their integrated exchange wallet.
Peer-To-Peer Marketplaces
P2P trading platforms like Paxful let people buy Bitcoin with cash from other individuals. Users can browse available offerings on the platform and select a seller who is eager to accept cash payments. They can then meet the seller in person to complete the transaction.
Bitcoin Vouchers
In Japan, certain merchants offer Bitcoin vouchers that can be obtained using physical currency. Individuals can procure these vouchers and subsequently exchange them for Bitcoin via either the merchant's website or a participating Bitcoin exchange platform. Examples of merchants offering such opportunities include Bic Camera, Yamada Denki, and FamilyMart.
Crypto Meetups
These social events are a great way to connect with other Bitcoin enthusiasts, learn about recent developments in the space, share ideas and experiences, and trade cash for Bitcoin as well. Some popular Bitcoin gatherings in Japan include the Tokyo Bitcoin Meetup, the Osaka Bitcoin Meetup, and the f*ckuoka Bitcoin Meetup.
Can Foreigners Buy Bitcoin in Japan?
Foreigners can buy Bitcoin in Japan. In fact, Japan is one of the most crypto-friendly countries so far. The Japanese government has recognized Bitcoin and other cryptocurrencies as legal property since 2017. This means that individuals, including non-residents, can buy, sell, and trade Bitcoin in Japan just like any other assets. To be able to engage in activities with crypto assets on Japanese exchanges, foreign nationals must have a valid form of identification, such as a passport and a Japanese bank account. Additionally, foreign citizens may be subject to restrictions on the amount of cryptocurrency they can purchase or hold, depending on their visa status.
Who Accepts Bitcoin in Japan?
As Japan is at the forefront of the cryptocurrency revolution, it's no wonder that many companies in the country have started accepting Bitcoin as a payment. One such company is Bic Camera, a leading electronics retailer that offers a wide range of products, including smartphones, laptops, cameras, and home appliances.
Another popular national company that welcomes crypto payments is Peach Aviation, an airline that offers affordable domestic flights in Japan and throughout other Asian countries.
If you're looking to satisfy your food cravings, you can head over to the famous Sushi-Bar Numazuko Ginza 1st, which allows customers to pay for their meals with BTC.
And if you're in the mood for something sweet, you can indulge in some delicious desserts at the Ginza Cozy Corner, a popular bakery chain that accepts Bitcoin payments.
Besides these names, there is also The Japan Blockchain Association (JBA). It is a non-profit organization that was established in April 2018 by a group of blockchain industry leaders in Japan. Its main goal is to promote the development and adoption of blockchain technology in Japan, and to establish a safe environment for its use.
These are just a few examples of the many companies in Japan that have embraced Bitcoin, making it easier for customers to make purchases and transactions using the iconic cryptocurrency.
How to Cash Out Bitcoin in Japan?
If you're a Bitcoin investor or trader in Japan, you may be curious about how to cash out your digital possessions. Fortunately, there are a variety of ways to do so, each with their own pros and cons.
Cryptocurrency Exchange
One of the most popular ways to cash out Bitcoin in Japan is through a cryptocurrency exchange. These platforms allow you to sell Bitcoin for Japanese Yen (JPY) and withdraw the funds to your bank account, debit card, or e-payment system. Still, the crypto-to-fiat service often comes at its cost: withdrawal fees do apply when you want to turn your crypto into classic money, so be sure to factor those into your calculations.
P2P
Another modus is to use a peer-to-peer (P2P) cryptocurrency network. These online portals connect buyers and sellers directly, allowing you to sell cryptocurrencies for JPY without going through an exchange. However, P2P marketplaces may have less liquidity than exchanges, meaning you may need to wait longer to find a buyer.
Decentralized Finance
If you're interested in decentralized finance (DeFi), you may be able to cash out your Bitcoin through a DeFi platform. These platforms use smart contracts to automate financial transactions, allowing you to convert your Bitcoin to other cryptocurrencies or stablecoins. DeFi also lets you lend, borrow, and trade cryptocurrencies without relying on intermediaries like banks or crypto exchanges. While DeFi platforms can be more complicated to use than regular crypto trading platforms, they may offer greater opportunities for users to earn higher returns on their investments and participate in decentralized governance of their favorite DeFi projects.
Credit Card
For those who prefer traditional finance, you may be able to cash out your Bitcoin using a credit card. Some cryptocurrency exchanges and payment processors allow you to link your credit card to your account, making it easy to sell your Bitcoin and receive funds directly to your card, minus all the fees applicable.
Gift Card
In Japan, one way to cash out Bitcoin is by purchasing gift cards for popular retailers. Many online platforms allow users to buy gift cards with Bitcoin for stores like Amazon, Tully's Coffee, and Rakuten. These gift cards can then be used to make purchases or be sold to other users for cash like JPY. Besides, some Bitcoin ATMs in Japan offer the option to purchase gift cards with Bitcoin as well. This method is convenient for those looking to quickly cash out their BTC holdings and can be a great way to use the cryptocurrency for everyday purchases.
Crypto Debit Card
Crypto debit cards are a feasible option to turn BTC into JPY in Japan. These cards allow you to load your digital funds onto them and spend them like traditional money at any merchant that accepts debit or credit cards. With a crypto debit card, you can easily convert your Bitcoin into Japanese yen or any other classic currency without having to use a traditional exchange platform. Plus, many crypto debit cards offer perks like cashback or discounts on certain purchases, making them an attractive option for those looking to earn extra rewards while spending cryptocurrency.
Crypto ATM
Bitcoin ATMs also provide a convenient avenue to extract cash from your Bitcoin wallet, although they do charge higher withdrawal fees than exchanges and peer-to-peer marketplaces and may set inconvenient limits for cashouts.
