Russian
English
Licensing the activity of cryptocurrency exchange in Japan
A VASP (Virtual Asset Service Provider) license is an official authorization to conduct legal business activities related to virtual assets. In addition to legal compliance, holding such a license opens access to cooperation with banks and increases trust among clients and partners.
Japan is a major financial hub in Asia, renowned for its strict regulation of the cryptocurrency market. The country consistently implements measures to ensure security standards and compliance with legal norms, making the VASP licensing procedure transparent and reliable. Japan’s adherence to rules and standards has earned it the trust of the international financial community, thereby attracting companies seeking to conduct legitimate activities with digital assets.
Regulation of VASP activities
Licenses in Japan are not divided into types. The country has a single authorization for providers of virtual asset exchange services under the Payment Services Act, which covers a wide range of activities. Companies fall under the single category of Crypto Asset Exchange Service Providers.
The regulator also cooperates with self-regulatory organizations, such as the Japan Virtual Currency Exchange Association (JVCEA), to develop and implement industry standards and rules.
Enterprises providing services related to virtual assets must obtain a VASP license.
These include:
-
Cryptocurrency exchanges.
-
Providers.
-
Token exchange platforms.
-
Intermediaries in crypto asset transactions.
-
ICO/IEO operators.
Requirements for companies
The VASP license in Japan is issued and supervised by the Financial Services Agency (FSA) in accordance with international FATF (Financial Action Task Force) standards.
Obligatory requirements
-
The company must be registered in Japan and have a legal presence in the country.
-
Appointment of qualified directors and executives is mandatory.
-
Strict KYC (Know Your Customer) and AML (Anti-Money Laundering) procedures must be implemented.
-
Internal control systems must be established to ensure compliance with regulatory requirements.
-
A physical office is required.
-
Minimum share capital of 10 000 000 JPY (~68 000 USD).
-
The company’s balance sheet must be positive.
-
Client funds must be segregated from company funds - a separate account must be opened.
Our experienced specialists at Law&Trust are ready to act as intermediaries and represent your interests in the licensing process. Consultations are available by phone or via our website.
Procedure for obtaining a VASP license in Japan
-
Choose legal formCompany registration in Japan. Typically, the Kabushiki Kaisha (KK) - a Japanese joint-stock company - is chosen.
-
Documents preparation and submissionPreparation and submission of the application.
Required documentation includes:
Incorporation documents, beneficiary information.
Financial model and 3-year forecasts.
AML/KYC and internal policies.
Capital data and proof of funds.
Biographies, references, and qualifications of key personnel.
Description of services and target markets.
Organizational structure and risk management plan. -
Registration fee and reviewA registration fee of 150 000 JPY (~1015 USD) must be paid. Application review. The review period typically lasts 3-4 months.
License issuance. After successful review, the FSA grants the license. The company obtains the status of a registered VASP and may begin legal operations.
Our Services
Law&Trust provides comprehensive support at every stage of obtaining a VASP license in Japan and other jurisdictions. We offer professional consultations, assist in selecting the most suitable jurisdiction for your business, guide you through the company registration process, and carefully prepare the required documentation.
Our services include:
-
Consultations on obtaining a VASP license.
-
Company registration in Japan.
-
Preparation of a complete application package.
-
Support during submission and communication with regulators.
-
Appointment of directors and AML officers.
-
Ensuring full compliance with regulatory requirements.
If you plan to expand your project internationally, legal assistance is essential. Our experts will help you select the optimal solution, guiding you at every stage - from concept to licensing and successful business launch.
