Japan's Financial Services Agency (FSA) has granted approval to 21 cryptocurrency exchanges, marking a significant milestone in the country's digital asset regulatory framework. Lastroot, a Tokyo-based platform, recently became the 21st exchange to receive FSA certification, reinforcing Japan's position as a leader in crypto adoption.
Regulatory Framework for Cryptocurrency Exchanges in Japan
Under Japan's revised Fund Settlement Law and Payment Services Act (effective April 2017), cryptocurrencies are legally recognized as a form of payment. The legislation mandates that all exchange operators register with the FSA to ensure compliance with anti-money laundering (AML) and consumer protection standards.
Approved Exchanges Overview
The FSA has authorized the following platforms to operate cryptocurrency trading services in Japan:
2017 Licensed Exchanges (16):
- Money Partners
- Quoine
- Bitflyer
- Bitbank
- SBI VC Trade
- GMO Coin
- Hobi Japan (formerly BitTrade)
- Btcbox
- Bitpoint Japan
- Fisco Cryptocurrency Exchange
- Tech Bureau
- DMM Bitcoin
- Bitarg (now ๆกๆก)
- Bitgate
- Xtheta
- BitOcean
2023โ2024 Licensed Exchanges (5):
- Lastroot
- (Additional exchanges approved this year)
๐ Explore secure crypto trading platforms
Spotlight on Lastroot: Japan's Newest Licensed Exchange
Founded in June 2016, Lastroot launched its crypto trading project "c0ban" in March 2017 before applying for FSA registration in September. The exchange is notable for:
- Blockchain-based business innovations
Membership in Japan's two leading crypto associations:
- Japan Virtual Currency Exchange Association (JVCEA)
- Japan Cryptocurrency Business Association (JCBA)
Why Japan's Regulatory Approach Matters
Japan's progressive yet structured cryptocurrency regulations:
- Enhance market transparency
- Protect investor assets
- Foster institutional adoption
- Set benchmarks for global crypto policies
๐ Learn about compliant trading practices
Frequently Asked Questions (FAQ)
Q1: What are the requirements for crypto exchanges in Japan?
A: Exchanges must register with the FSA, implement AML/KYC procedures, maintain segregated customer funds, and undergo regular audits.
Q2: How does Japan classify cryptocurrencies legally?
A: Cryptocurrencies are defined as "property values" under the Payment Services Act and can be used for payments.
Q3: Which Japanese exchanges support international users?
A: Currently, most FSA-approved platforms primarily serve domestic users due to strict compliance requirements.
Q4: What security measures do licensed Japanese exchanges follow?
A: Mandatory cold wallet storage, two-factor authentication (2FA), and insurance against hacking incidents.
Q5: Can new exchanges still apply for FSA licensing?
A: Yes, but the approval process typically takes 6โ12 months with rigorous compliance checks.
Note: This content is for informational purposes only and does not constitute financial advice. Regulatory frameworks may change; always verify current requirements with official sources.