Eternity Law International News Crypto license in Japan

Crypto license in Japan

Published:
July 3, 2023

Japan is considered like countrysides that is the most loyal to this type of business environment, such as crypto-currencies. Since 5 years, local authorities have amended payment-services legislation to determinate crypto-currencies as a mechanism of payment. Since then, anyone who owns them can consider their accumulated crypto as legal-assets.

To work in this sphere, it is only necessary to obtain a cryptocurrency license in Japan. The approach of getting one is similar in other countries. The specifics of the local legislation and regulatory prerequisites are more stringent than in the conventional offshore zones. Therefore, one has to be very careful and attentive when obtaining this kind of permit.

Kinds of crypto operations when crypto-currency licenses are required in Japan

According to the legislation in Japan Cryptocurrency exchange licenses are allocated for legal-entities providing the following kinds of usefulness:

  • buying, selling, or exchanging cryptocurrencies;
  • intermediary, agency, or brokerage activities in this area;
  • management of funds, and their storehouse to trades for dealings with crypto-currencies.

Local legislation distinguishes 2 kinds of crypto-currencies. The first kind can be used as settlement for usefulness provided. Such crypto may be swapped for fiat currencies or transferred to the e-wallets of other market participants. The second type of crypto-currency is intended for interaction and transfer to crypto-currencies.

Working with these types of crypto-currencies, market participants must remember that their activities are not covered by financial-licenses. Therefore, in Japan, it is forbidden to provide depository or credit institution usefulness for lending crypto-currencies. However, for standard operations with buying/selling crypto-currency on general exchanges, one must have the appropriate assignment from the local regulator.

Who is obliged to obtain a crypto license

Japan VASP license is obligatory for associations, which will work on this market. First of all, it concerns exchanges with transactions in virtual-currencies.

At the same time, banking associations are prohibited from operations with crypto-businesses. However, they can conduct one-time transactions. To obtain a license to conduct such dealings, it is essential to furnish documents confirming that the transaction isn`t systemic and the bank’s technical base is capable of conducting such a transaction.

Also in Japan Cryptocurrency License must obtain from corporations that provide services for its storage. For example, these are the creators of electronic wallets. They need to be officially registered and indicate the kind of their activity to conduct transactions with crypto-currencies. Similarly, providers who have developed their wallets for mediating crypto-trading should do the same.

Prerequisites for a Cryptolicense

Cryptocurrency Regulations in Japan prohibit this business for corporations that are not officially registered. Therefore, to apply for an appropriate assignment, a corporation must:

  • have a registered legal entity with an open office in Japan;
  • have a minimum funds of 10 mio JPY or more;
  • a minimum of one employee in a management position must be a resident;
  • the corporation must have a management department and an internal audit department (one employee cannot be trustworthy for both departments at the same time);
  • all co-workers must have suitable qualifications and experience in the crypto-business;
  • compulsory hiring of a contracted estimation firm to accomplish the financial audit.

If all documents are submitted to the regulator on time, a license will be issued within six months. However, the regulator may also report the need for additional time to review applications in certain cases.

Who will help with obtaining a crypto authorisation in Japan

Under Japanese law, it is essential to submit docs for such licenses in person to representatives of the corporation that is spreading for the permit. Moreover, the regulator’s representatives may ask additional questions at the meeting and often directly influence their decision.

To prepare for such a meeting, it is best to consult with representatives of corporations that have repeatedly helped companies obtain the relevant permits. Our employees are a team of true professionals. Each of us has extensive experience in working with the Japanese regulator. We will not just study all the necessary documentation, but also help to prepare it.

Moreover, we are ready to take care of the rehearsal of the oral interview of your employees. After such a consultation, the probability of conveying the necessary approval increases many times over. Therefore, trust real professionals.

Is crypto regulated in Japan?

Several restrictions in Japan regulate the crypto-currency market. The local FIC acts as the regulator.

Can I trade crypto in Japan?

In case you have a corporation that meets the prerequisites of the local regulator you can work in this market as a trader without any problems.

You could be interested

Regulation of ICO in Switzerland

February 16, 2018 The Financial Markets Supervision Service of Switzerland (FINMA) has published a survey and legal recommendations for the organizers of the ICO. In particular, the Service rightly points out that the law and regulation of the financial market can not be applicable to all ICOs without exception, therefore the need for compliance with...

Cryptocurrency exchange and exchanger development

A crypto exchange is a trading platform through which you can buy, sell and exchange cryptocurrencies. Like Forex, cryptocurrency exchanges facilitate cooperation between buyers and sellers of cryptographic currency, which ensures the reliability and security of transactions. The crypto exchange operates using a trading engine. The speed and correctness of operations depends on how optimized...

Support in obtaining certifications and regulatory approvals for AI systems

Unexpectedly for all of us, technology has experienced a boom in development in a short period of time. Artificial intelligence has become our personal assistant in everyday life, at work, and during study. Now, it is no longer associated with futuristic projects from the far future – it works here and now. AI systems are...

Company registration in China

Non-residents can register a company in China in the form of a representative office of a foreign firm or as a local organization with joint or fully foreign capital. If an entrepreneur is focused on full-fledged income turnover, the first type will not be a suitable option. The freedom of representation is significantly limited, they...

Crypto license in Japan

Japan is considered like countrysides that is the most loyal to this type of business environment, such as crypto-currencies. Since 5 years, local authorities have amended payment-services legislation to determinate crypto-currencies as a mechanism of payment. Since then, anyone who owns them can consider their accumulated crypto as legal-assets. To work in this sphere, it...

Corporate Lawyer France

Legal support for businesses in France is about more than paperwork. It’s about knowing what works – and what risks to avoid. A corporate lawyer France helps you make smart decisions at every stage of your company’s growth. Whether you’re launching a startup, managing daily operations, or expanding across borders, legal guidance matters. Corporate lawyer...

Related posts

Ready-made company in Japan

The government of Japan is increasingly supporting small businesses, so almost 99% of companies in the jurisdiction are considered small. In almost all industries, large enterprises coexist with small firms, many holdings place orders with private entrepreneurs. In Japan, a characteristic feature is the large technological chains serving large companies, which consist of small firms....

Firm registration in Japan

Before enrolling a firm in Japan, you need to follow certain processes and fulfill specific demands.  Japan company formation Company formation in Japan involves several steps and considerations. Here’s an overview of the process: Requirements for Japan company Here are the demands and papers needed for Japan company registration: Advantages of enroll company in Japan...

Crypto License in Cyprus

This region is emerging as a major hub for e-currency commercial operations, thanks to its pioneering legislative scheme, low charges, and strong monetary facilitation. For organisations looking to enlarge their activity within the e-currency space, a crypto licence in Cyprus to obtain  from the CySEC is notable. While the process is thorough, the benefits of...

Forex license in Japan

Most firms offering financial services are needed to possess such a permit as Forex license in Japan. It’s especially significant if they work with citizens or residents of the country. Otherwise, such activities will be illegal and could be charged by big fines. Below we will describe the types and methods of obtaining permits in...

Legal regulation of operations with cryptocurrencies in Japan

Japan is the World leader in innovations. Therefore, there is nothing surprising in that the legal regulation of operations with cryptocurrencies in Japan is not prohibited by the legislation of the country. There is a Commission on Digital Assets of Japan, and there is also a special law on the regulation of exchanges. In this...
Fill the blank: