Crypto Exchange License Japan: What You Need to Know About FSA Rules and Approved Exchanges

When you trade crypto in Japan, you're not just using a platform—you're relying on a system regulated by the FSA, Japan's Financial Services Agency, the government body that licenses and monitors all crypto exchanges. Also known as Japan's Financial Services Authority, the FSA enforces some of the strictest crypto rules in the world. Unlike in many countries where exchanges operate in a legal gray area, Japan makes it clear: no license, no business. If a crypto platform doesn't have FSA approval, it's illegal to offer services to Japanese residents.

This isn't just about paperwork. To get licensed, exchanges must prove they use cold storage for 95% of customer funds, keep client money separate from company funds, run regular security audits, and have a clear anti-money laundering system. These aren't suggestions—they're non-negotiable. That’s why big names like BitFlyer, Coincheck, and GMO Coin are on the official FSA list, while hundreds of others disappeared overnight. The FSA doesn’t just want exchanges to be safe—it wants them to be transparent, accountable, and built for long-term trust.

The rules also affect how you trade. If you're using a Japanese exchange, you're likely dealing with higher fees, slower withdrawals, and fewer altcoins. That’s because the FSA limits which tokens can be listed—only those with clear ownership, no anonymous teams, and verifiable utility make the cut. Meme coins? Dead on arrival. DeFi protocols without legal structure? Not allowed. This isn't about stifling innovation—it's about stopping scams before they hurt people. You’ll find fewer flashy projects, but you’ll also find far fewer ruined accounts.

Outside Japan, many traders assume these rules are outdated or too strict. But look at the data: Japan has one of the lowest rates of crypto-related fraud in the world. When exchanges like Coincheck got hacked in 2018, the FSA didn’t just punish them—they forced a full overhaul of the entire industry. That’s why today, Japanese exchanges are among the most secure globally. If you're serious about safety, this system works.

What you’ll find in the posts below are deep dives into how the FSA operates, which exchanges actually hold licenses, what happens when they break the rules, and how these regulations shape everything from trading options to tax reporting. No fluff. No hype. Just the facts behind the license that keeps Japan’s crypto market one of the cleanest on earth.