Crypto Exchange Licensing in Japan: Rules, Requirements, and What Matters in 2025
When you trade crypto in Japan, you’re not just using a platform—you’re relying on a system regulated by the Crypto Exchange Licensing in Japan, a legal framework enforced by Japan’s Financial Services Agency (FSA) that requires all crypto platforms to register, audit, and protect user funds. Also known as FSA-registered crypto exchange, this system is one of the most transparent and strict in the world. Unlike places where exchanges operate in the gray zone, Japan demands real accountability: cold storage, regular audits, and full KYC. If a platform isn’t licensed, it’s illegal to operate there—and users have zero legal protection.
This isn’t just about paperwork. The FSA Japan, Japan’s Financial Services Agency, the government body that issues and enforces crypto exchange licenses. Also known as Japan Financial Services Agency, it has banned over 20 unregistered platforms since 2020, including some big names that tried to slip through the cracks. The rules are clear: exchanges must keep 95% of customer funds in cold wallets, submit quarterly financial reports, and prove they have enough capital to cover losses. This is why Binance, Bybit, and OKX all had to create separate Japanese entities with local licenses just to keep serving users there. If you’re trading on a platform that doesn’t display its FSA registration number, you’re risking your money.
And it’s not just about safety—it’s about trust. Japanese users expect clarity. That’s why licensed exchanges like Bitbank, one of Japan’s oldest and most transparent crypto exchanges, fully compliant with FSA rules and offering fiat on-ramps in yen. Also known as Bitbank CC, it list their license ID right on their homepage. They don’t hide behind vague terms like "global service" or "offshore operations." They follow the law. That’s why they’ve survived market crashes and regulatory crackdowns while others vanished.
What you’ll find in the posts below are real breakdowns of exchanges that operate under Japan’s rules, what happens when they break them, and how the FSA’s approach compares to other countries. You’ll see why some platforms got banned, how audits work behind the scenes, and what you should check before you deposit your crypto. There’s no fluff—just facts about who’s licensed, who’s not, and why it makes a difference to your wallet.
