With the popularity of cryptocurrency these days, it’s unsurprising that many people considering moving to Japan would also like to know the situation with their investments while living abroad. We’re debatably in the middle of a bull-run, so let’s get stuck in so you can make an educated decision with moving to Japan.
Am I Allowed To Invest Here?
Yes! You are fully permitted to invest in cryptocurrency whilst living in Japan on all visas. The only thing you might have to be careful with is that if you day trade crypto, it could be seen as extra income rather than investment which could breach certain visas. If you invest and make sales 2 weeks or so later you should be fine. The only thing you have to be careful of is paying the right tax on sale and profit. We’ll get into that next.
What About Tax?
In Japan, cryptocurrency profits are considered taxable under income tax, with a 200,000-yen annual profit allowance. Once your earnings exceed this threshold, taxes apply, and unfortunately, any crypto-related losses cannot offset these profits. Moreover, a 10% municipal tax is added on top of your applicable income tax rate, increasing the overall tax burden.
Taxable events in the cryptocurrency space are extensive. These include selling crypto for fiat currencies like Japanese yen, exchanging one cryptocurrency for another (including stablecoins), and using crypto to purchase goods or services. Other taxable scenarios include receiving crypto as payment, earning staking rewards or liquidity pool rewards, and acquiring new coins from forks, mining activities, airdrops, DeFi interest, or referral bonuses. Even gifting crypto is taxable, highlighting the need for careful financial planning and record-keeping in Japan’s crypto ecosystem.
| Lower Limit | Upper Limit | Tax Rate (%) |
|---|---|---|
| 0 | 1,950,000 | 5 |
| 1,950,000 | 3,300,000 | 10 |
| 3,300,000 | 6,950,000 | 20 |
| 6,950,000 | 9,000,000 | 23 |
| 9,000,000 | 18,000,000 | 33 |
| 18,000,000 | 40,000,000 | 40 |
| 40,000,000+ | – | 45 |
Where to Buy Cryptocurrency in Japan
If you’re ready to dip your toes into the world of cryptocurrency, Japan offers a variety of trusted exchanges and platforms where you can easily buy, sell, and trade. You’ll have to upload your residence card to be allowed to use these services as per the Financial Services Agency policy. Here are a few of the top options:
1. bitFlyer
Based in Tokyo, bitFlyer is one of Japan’s largest and most popular cryptocurrency exchanges. It offers a user-friendly interface, a wide variety of cryptocurrencies, and strong security measures. bitFlyer is particularly appealing to beginners, with simple features that help you get started with minimal hassle. The spreads are quite large, so be careful of that. You’ll be charged 0.0004 Bitcoin flat rate for any Bitcoin withdrawal.
2. Coincheck
Coincheck is another top exchange platform in Japan. Offering a wide selection of coins and trading pairs, Coincheck provides both beginner and advanced users with the tools they need to navigate the crypto space. The platform is known for its intuitive mobile app, making it easy to buy and sell on the go. You won’t be charged for Bitcoin withdrawals.
Binance
I’m sure that if you’re interested in cryptocurrency, you’ll be aware of Binance. With its high liquidity, it can be seen as a reliable exchange to get your fiat into crypto. Since August 2023 there’s been a dedicated Binance Japan service. You be charged around 0.00011 Bitcoin for Bitcoin withdrawals.
All of these websites have at least some degree of English support. But please note, if you have certain enquiries, you might be required to call up in Japanese to sort them quickly. I’ve found in my expereince that my enquiries in Japanese get responded to way before my enquiries in English.
Signing Up
The signing up process is roughly the same for all of these services. You’ll need to make an account and verify your identity with a residence card. After that, you’ll need to link a Japanese bank account to make deposits.
The system of depositing is weird, as you’ll often have to 振り込み furikomi (bank transfer) from an ATM to a bank account that’s connected to the exchange you choose to use. Although, online banking is becoming much more common, so you might be able to do that on an app now. I recommend trying a small amount first before transferring anything larger just to check you have got the process right. In my experience deposits are reflected very quickly.
Once your account is verified and money is in, you’re free to buy crypto as you wish. Congratulations!
One important thing to note is that whilst you have residency in Japan, using these services is fine. But if you leave Japan, make sure you remove everything from these exchanges before you leave, to avoid any of your assets being frozen. The whole link to residency is monitored frequently and you don’t want your cryptocurrency of fiat currency to be locked.
Useful Japanese Crypto Language
Here are some useful Japanese translations to help you navigate the world of crypto in Japan:
| English | Japanese | Romaji |
|---|---|---|
| Cryptocurrency | 暗号通貨 仮想通貨 |
Angōtsūka Kasōtsūka |
| Bitcoin | ビットコイン | Bitto Koin |
| Ethereum | イーサリアム | Īsariamu |
| Taxation | 課税 | Kazei |
| Income Tax | 所得税 | Shotokuzei |
| Selling Crypto | 暗号通貨の売却 | Angōtsūka no baikyaku |
| Buying Crypto | 暗号通貨の購入 | Angōtsūka no kōnyū |
| Identity Check | ご本人確認 | Gohonnin kakunin |
| 2-Step Authentication | 2段階認証 | Nidankai Ninshō |
Living in Japan is an extraordinary experience, filled with wonder and excitement. It will change you as a person and shape who you become in the future. Whilst I’m sure you’ll have some anxieties when moving here, don’t let crypto investments be one of them.
