A Comprehensive Guide To Opening A Crypto Asset Exchange In Japan
Japan has taken the lead in cryptocurrency regulation. Whether you want to open an exchange, list your token, or market to Japanese traders, companies must follow the regulations put in place. The regulations can sound quite complex at times which is why it is important to consult an attorney in Japan before proceeding. This guide is meant to offer some clarity to begin preparing before taking the next steps.
As of July 2019 there were 110 crypto exchanges looking to launch in Japan according to the FSA. LINE Corporation, who recently received their Japanese license was 1 among those 110. They became the 20th licensed crypto exchange in Japan. Although, currently there are 18 according to the Japan Virtual Currency Exchange Association (JVCEA).
According to a recent study by DataLight, Japan is second only to the US in user traffic to crypto exchanges . There are approximately 6.24 million cryptocurrency traders in Japan. As well, Japan steadily remains in the top 3 of global crypto trading volume. On average the Japanese Yen accounts for 11% of Bitcoin trading, an impressive stat for an island.
The chart below was provided by the JVCEA which shows the amount of each coin traded in quantity and amount in Yen for the month of June, 2019.
Opening A Crypto Exchange In Japan
Across the globe, starting a crypto exchange has been mainly a grey area in terms of regulation. Many exchanges have been flocking to islands like Malta who have been crypto friendly. When it comes to top crypto trading nations, Japan has been known to be leading the way in terms of regulation. Recently, they have made the regulations even clearer for exchanges giving them the parameters on how to operate in the country. With the formation of the JVCEA, Japan now has a recognized committee focused on working with regulators to create a positive crypto environment. A complete list of the JVCEA members can be found here > https://jvcea.or.jp/member/
Download our full guide below to get:
- A complete list of requirements
- What you will need for your application
- Reasons why you may get refused
- New laws coming in 2020
- Rules on soliciting Japanese customers
- New token listing information