Japan has long been a leader in establishing a clear and secure regulatory framework for digital assets. As one of the first countries to formally regulate cryptocurrency exchanges, it requires all platforms operating within its jurisdiction to obtain a license from the Financial Services Agency (FSA). These licensed crypto exchanges must meet strict standards for security, anti-money laundering (AML), and consumer protection—making them some of the most trusted platforms globally.
This guide explores the top cryptocurrency projects and exchanges that hold official Japanese virtual currency exchange licenses. Whether you're an investor seeking compliant platforms or a user prioritizing safety, understanding these licensed entities offers valuable insight into secure digital asset management in one of Asia's most advanced fintech markets.
What Is a Japanese Virtual Currency Exchange License?
In Japan, the term "virtual currency" was officially defined under the Payment Services Act in 2017. Since then, any business facilitating the exchange of cryptocurrencies against fiat currencies like JPY must be registered and licensed by the Financial Services Agency (FSA).
To earn and maintain this license, companies must:
- Demonstrate robust cybersecurity infrastructure
- Implement comprehensive AML and Know Your Customer (KYC) procedures
- Maintain sufficient capital reserves
- Submit regular audits and financial reports
These requirements ensure only serious, well-capitalized, and compliant firms operate legally—setting a high bar for market participants.
👉 Discover how licensed crypto platforms ensure security and compliance in regulated markets.
List of Licensed Cryptocurrency Exchanges in Japan
Below is a curated list of major crypto projects and exchanges authorized to operate in Japan, reflecting both domestic innovation and global players adapting to local regulations.
bitFlyer – Japan’s Largest Licensed Crypto Exchange
Founded in 2014, bitFlyer is not only one of Japan’s earliest exchanges but also the first to receive full FSA licensing. It supports trading in Bitcoin, Ethereum, Litecoin, and other major cryptocurrencies with yen pairs. Known for its strong security record and user-friendly interface, bitFlyer also offers institutional-grade services and has expanded into derivatives trading.
The platform's transparency and compliance focus have made it a model for regulated crypto operations worldwide.
Coincheck – Recovered and Rebuilt After a Major Hack
Coincheck gained notoriety after suffering a $530 million NEM theft in 2018—one of the largest exchange hacks at the time. However, instead of collapsing, the company reimbursed all affected users and underwent a complete overhaul. Acquired by Monex Group, it re-applied for and received FSA licensing after strengthening its cold storage systems and internal controls.
Today, Coincheck offers over 20 cryptocurrencies and emphasizes education and accessibility for retail investors.
Bitbank – High-Performance Trading with Institutional Tools
Owned by SBI Holdings, Bitbank provides advanced trading features including margin trading and real-time market data. Its integration with Japan’s banking system allows seamless JPY deposits and withdrawals. The exchange focuses on performance and reliability, appealing to active traders while maintaining full regulatory compliance.
Rakuten Wallet – Bridging E-Commerce and Crypto
Backed by the e-commerce giant Rakuten, this wallet service enables users to buy, sell, and spend crypto across millions of online merchants in the Rakuten ecosystem. With FSA licensing, it ensures secure transactions while promoting crypto adoption through rewards programs and everyday utility.
S.BLOX – A Rising Player in Japan’s Regulated Space
A joint venture between SBI Group and Remitano, S.BLOX received its license to provide crypto exchange services with a focus on innovation and cross-border solutions. It aims to bridge Japanese investors with global blockchain opportunities while adhering strictly to domestic regulations.
Tokyo Hash – Specializing in Institutional Services
While smaller than others on this list, Tokyo Hash stands out for targeting institutional clients. It offers custody solutions, OTC trading desks, and advisory services—all under FSA oversight. This positions it as a trusted partner for professional investors entering Japan’s crypto market.
Sakura Exchange Bitcoin – Focused on Bitcoin Innovation
As the name suggests, Sakura Exchange Bitcoin emphasizes Bitcoin-centric products and services. It supports spot trading, staking, and educational initiatives aimed at growing Japan’s understanding of decentralized technologies—all within a fully licensed environment.
Crypto Garage – Pioneering Blockchain Financial Products
Originally incubated by Mitsubishi UFJ Financial Group (MUFG), Crypto Garage develops blockchain-based financial instruments such as tokenized bonds and payment solutions. While not a traditional exchange, it holds an FSA license for crypto asset transactions and plays a key role in Japan’s institutional blockchain evolution.
Other notable licensed platforms include CoinBook, CoinBest, BitTrade, and Coinbase, which operates a limited but compliant service in Japan through a local subsidiary.
👉 Learn how global exchanges adapt to regional regulations like Japan’s strict licensing rules.
Why Licensing Matters for Investors
Operating under FSA supervision gives these platforms several advantages:
- Enhanced Security: Mandated cold wallet usage and insurance policies protect user funds.
- Legal Recourse: Users have clearer paths for dispute resolution.
- Market Confidence: Licensing signals legitimacy, attracting institutional investment.
- Stable Innovation: Regulated environments encourage sustainable product development.
For international investors, using a Japanese-licensed exchange often means higher trust levels compared to unregulated offshore platforms.
Core Keywords Identified
- Japanese virtual currency exchange license
- FSA-licensed crypto exchanges
- Regulated cryptocurrency platforms
- bitFlyer
- Coincheck
- Bitbank
- Rakuten Wallet
- Crypto Garage
These keywords naturally reflect search intent around compliance, safety, and trusted crypto access in Japan.
Frequently Asked Questions (FAQ)
Q: Are all cryptocurrency exchanges in Japan required to be licensed?
A: Yes. Any platform offering fiat-to-crypto trading in JPY must hold an FSA license. Unlicensed operations are illegal and subject to shutdown.
Q: Can foreign exchanges operate in Japan without a license?
A: No. Even global giants like Coinbase must establish local entities and comply with Japanese law to serve Japanese customers directly.
Q: How does the FSA monitor licensed exchanges?
A: Through regular audits, mandatory reporting, on-site inspections, and collaboration with law enforcement to prevent money laundering.
Q: Is my money safe on a licensed Japanese exchange?
A: While no system is 100% risk-free, licensed exchanges are required to store most assets offline, carry insurance, and maintain capital buffers—greatly reducing exposure.
Q: What happens if a licensed exchange gets hacked?
A: The FSA mandates contingency plans. In past cases like Coincheck, companies were expected—and often required—to compensate users fully.
Q: Does holding a license mean the FSA endorses the platform?
A: Not exactly. Licensing confirms compliance with operational standards but doesn’t constitute government endorsement of investments or performance.
👉 See how top-tier security measures are implemented on regulated crypto platforms.
Final Thoughts
Japan’s proactive approach to cryptocurrency regulation has created one of the safest environments for digital asset trading. The country’s licensing regime sets a benchmark for balancing innovation with investor protection.
By choosing FSA-licensed platforms like bitFlyer, Coincheck, or Rakuten Wallet, users gain access to secure, transparent, and legally sound services. As global regulators look to Japan as a model, understanding these licensed projects becomes essential for anyone serious about compliant crypto engagement.
Whether you're based in Tokyo or trading internationally, recognizing the value of regulatory approval helps you make smarter, safer decisions in today’s complex digital economy.