How To Get a Crypto License in Japan?

Applying For a Crypto License in Japan – Key Takeaways

  • Japan is a pioneer for crypto regulation in Asia
  • Capital requirements set at 10 million Japanese yen
  • Cryptocurrency is regulated by the Japan Financial Services Authority (JFSA)
  • The Payment Services Act (PSA) provides the regulatory framework for cryptocurrency
  • License approval period 12 – 16 months

Obtaining a Virtual Currency Exchange License in Japan – How Does It Work?

  • Pre- Incorporation due diligence

We will first establish availability of your proposed business name and secure it accordingly, then we will conduct due diligence on the background of the exchange in order to understand the complexity of the proposed business and review it as required.

  • Incorporation of Company

A detailed list of all necessary documents for incorporation of the company will be provided to the client and a legally satisfactory local representative is proposed. On behalf of our client we will draft all the required complementary documents, file the application and pay the associated fees.

  • Registration with authorities

As per legal requirements we will file registrations with the Bank of Japan and Japan FSA (Financial services authority).

  • Opening of Bank account

A corporate  bank account within (attendance required) or outside Japan will be set up.

  • Transmission of documents

Hard copies of all documents will be transferred to clients possession at any address of clients choice.

 Virtual Currency Exchange License in Japan – Outline Of Permissions

    • Licensed exchanges can offer clients the ability to buy, sell, and trade cryptocurrencies.
    • Offer wallet services where registered users can store their virtual currency.
    • Conversion of cryptocurrency to fiat and vice-versa
    • Facilitate transfers of virtual currencies between users on their platform.

Important Facts Related to Obtaining a Virtual Currency License in Japan

    • Taxes – The current corporate tax rate in Japan is 30.86%
    • Local Representation – A physical presence with local staff is a must for exchanges looking to obtain cryptocurrency regulation in Japan.
    • Unique Company Formation Requirement –  All licensed exchanges must register a joint stock company, known in Japan as Kabushiki Kaisha (KK). 
    • Capital Requirements: All regulated Japanese cryptocurrency exchanges must have a minimum of 10 million yen ($87,000) in paid up capital

Japan Crypto License Requirements – What You Need to Know

  • Initial Legal & Regulatory Assessment

Before initiating the licensing process, a detailed legal review of your business model is required. This ensures compliance with the Payment Services Act (PSA), the principal legislation governing crypto exchange services in Japan. During this phase, we assess eligibility, confirm the required capital thresholds, and prepare a strategic roadmap for license application.

  • Company Incorporation in Japan

To apply for a Japan crypto license, you must first establish a local entity—typically a joint stock company (Kabushiki Kaisha). We’ll assist with company registration, draft all supporting corporate documents, and coordinate with legal advisors to ensure full compliance with Japanese commercial law.

  • Application Submission to the Japan Financial Services Agency (JFSA)

After incorporation, we prepare and submit the complete application package to the Japan Financial Services Agency (JFSA). This includes your internal policies, cybersecurity protocols, AML/CFT procedures, and a detailed business plan. The JFSA conducts a rigorous review process to verify operational readiness and financial integrity.

  • Capital Requirements & Infrastructure

To qualify for a Virtual Currency Exchange License, your entity must meet minimum capital requirements—typically JPY 10 million (approx. USD 65,000) in paid-up capital. Additionally, licensed exchanges must maintain a compliant IT infrastructure, robust wallet management, and a customer support team based in Japan.

  • Banking and Operational Setup

As part of our turnkey service, we assist with the opening of a corporate bank account in Japan, which is essential for handling client funds and satisfying licensing obligations. We’ll also help set up physical office space and facilitate the hiring of local directors or compliance officers, if required.

  • Ongoing Compliance & Reporting

Licensed crypto exchanges in Japan are subject to continuous regulatory supervision. Regular audits, financial reporting, and ongoing KYC/AML checks are mandatory. Our compliance team will provide ongoing support to ensure full adherence to all local regulations.

Why Obtain a Japanse Cyrptocurrency Exchange License? – Consider 4 Major Advantages

      • The Japan FSA is the most recognized regulator of virtual assets in Asia, giving your exchange a stamp of recognition that will truly separate it from the crowd
      • From both an economic and political standpoint, Japan is a very stable country to conduct business in
      • Japan is recognized for its strong work ethic, meaning the local members of your team will add tremendous value to your operation
      • As each year progresses, virtual assets receive more and more mainstream exposure making a cryptocurrency exchange license in Japan a wise investment of time and resources

Why Apply for a Crypto License in Japan?

As one of the first countries in Asia to set forth a comprehensive regulatory framework for cryptocurrency regulation, Japan has paved the way for the adoption of cryptocurrency as an established asset class not just in Asia but the world as a whole. Due to Japan’s positive reputation in the cryptocurrency industry, a Virtual Currency Exchange license in Japan is extremely desirable for any cryptocurrency exchange or blockchain project looking to for global recognition. Obtaining a cryptocurrency license in Japan is by no means easy an easy process, however, the prestige, global recognition, and credibility the license offers makes an application worthwhile for any crypto exchange looking to compete with the top industry players.

Atomiq Consulting – Your Partner for Cryptocurrency Exchange Licensing

If you are interested in obtaining a virtual currency license in Japan, we are happy to provide a detailed outline of the process, price quote and overview associated fees. At Atomiq Consulting we leverage our professionalism and years of experience in the financial services industry to deliver a smooth and efficient application process.

Contact Us Today to Learn More About Obtaining a Virtual Currency License in Japan

    FAQ Related to Applying for a Cryptocurrency License in Japan

    How long does it take to incorporate a Japanese joint stock (Kabushiki Kaisha) company?

    Establishing a Kabushiki Kaisha company is a pre-requisite to obtaining license approval, typically it takes between 8-10 weeks to establish the company.

    Can a stakeholder be a listed director of the company?

    Yes, the legislation permits a stakeholder to be a director in the company at the same time.

    How many cryptocurrency exchanges are currently licensed in Japan?

    Around 30 cryptocurrency exchanges are currently licensed in Japan. Examples include: BitFlyer, Coincheck, and GMO Coin.

    Is Atomiq Consulting able to assist with banking services as well?

    Yes, in addition to helping obtain the cryptocurrency license in Japan we’ll also help your exchange establish a local bank account in Japan.

    Under which regulatory framework is cryptocurrency regulated in Japan?

    The Payment Services Act (PSA) provides the groundwork for cryptocurrency regulation in Japan.

    Which regulatory body is responsible for virtual / cryptocurrency exchange regulation in Japan?

    The Japan Financial Services Agency (JFSA) regulates all activities pertaining to cryptocurrency exchanges and blockchain themed projects.

    Published: April 25, 2018 | Updated: May 27, 2025
    About the Author

    This article was written by Jonathan Baumgart, Founder and CEO of Atomiq Consulting. With over a decade of experience in the forex industry, Jonathan specializes in helping businesses launch brokerages and navigate global licensing requirements.

    Connect with Jonathan on LinkedIn



    Blog Posts

    View all posts