Having the most advanced regulatory regime for cryptoassets, Japan is trying to promote investment in cryptocurrencies by creating incentives for entrepreneurs seeking to obtain an ICO license in Japan.
Being the world's largest market for bitcoin, Japan recognizes Bitcoin and other digital currencies as legal tender. It also classifies cryptocurrency profits as miscellaneous income; hence, cryptoasset investors are taxed at rates ranging from fifteen to fifty percent.
Japan’s cryptoasset exchange regulations are getting constantly updated; therefore, obtaining a cryptoasset exchange license in the state of Japan is currently much easier than it was, let’s say, two years ago. Opening & running cryptoasset exchanges in the state of Japan is perfectly legal; however, following a spate of cyber attacks, including the notorious Coincheck (in which more than five hundred million dollars got embezzled), cryptocurrency regulation has become a matter of national concern. The FSA, the country’s top financial regulator, has tightened its requirements for trade and exchange:of cryptocurrencies. From now on, operating a cryptocurrency exchange in Japan requires applying for registration with the FSA.
Accordingly, if you want to exchange virtual currencies in Japan, you must definitely obtain a license. This process can take up to six months, and requires potential applicants to comply with stringent requirements for cybersecurity, AML & CFT.
What Future Holds in Store
Despite being friendly to cryptocurrencies, Japan is paying increasingly more attention to combating money laundering crimes. In particular, following negotiations between cryptocurrency exchange operators & the FSA, an agreement was signed whereby a self-regulatory body – the JVCEA – was created. The JVCEA will be providing advice to unlicensed cryptocurrency exchanges and ensure their compliance with the existing regulations.
Japan: Getting a Cryptocurrency License
Getting a cryptocurrency exchange license in Japan or obtaining an ICO license in Japan requires an indepth knowledge of the country’s numerous rules & regulations. You can, of course, spend weeks or months trying to acquire the necessary legal expertise; however, it’s no guarantee that you’ll be able to cover all the bases. Therefore, it makes sense to entrust it to somebody suitably qualified to do the job quickly & professionally. IQ Decision UK has all it takes to deal with the legal challenges you’re likely to encounter on the path toward your ultimate goal – establishing a cryptocurrency business in Japan. Our experts will be happy to relieve you of your legal burden, letting you focus on the more pressing matters at hand.