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 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.