Japan's financial regulator has recently approved a new cryptocurrency exchange, Bitocean, bringing the total number of licensed exchanges in the country to sixteen. As market competition intensifies, many platforms are expanding their services abroad to capture new opportunities. At the same time, more businesses are beginning to explore Bitcoin-related services.
Overview of Japan’s Approved Crypto Exchanges
Bitocean, based in Tokyo, has officially become the sixteenth cryptocurrency exchange approved by Japan’s Financial Services Agency (FSA). According to the regulator’s website, Bitcoin is currently the only digital asset available for trading on this platform.
Founded in 2013 with operations in both China and Japan, Bitocean has been developing bidirectional Bitcoin ATMs and trading systems. The company also states that it has contributed to the process of liquidating and rehabilitating Mt. Gox while establishing its new exchange based in Tokyo.
This marks the third group of exchanges approved by the FSA. The first batch of 11 exchanges received licenses in September, followed by four earlier this month. Notably, Coincheck, Japan’s second-largest Bitcoin exchange, is still under review by the FSA and has not yet been fully licensed.
Strategic Overseas Expansion of Japanese Exchanges
With increasing competition in the domestic market, licensed exchanges are already shifting their strategies toward international expansion. A recent Nikkei report highlighted the challenges and motivations behind this trend:
“Japanese crypto exchanges are expanding overseas to increase trading volume and liquidity. With more than 20 digital currency exchanges now operating in Japan, there is not enough business to go around. Moreover, the limited variety of tradable cryptocurrencies often leads to long waiting times for trade execution. Large orders can easily trigger significant price volatility.”
Bitflyer, Japan's largest Bitcoin exchange, expanded into the U.S. market in late November and plans to open a European-based exchange soon. Other platforms are also venturing abroad: Quoine is preparing to launch operations in the Philippines next year, while Bitpoint established an exchange in South Korea in November and is set to open another in Taiwan in January 2018. Bitbank is also eyeing entry into other Asian and African markets.
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Rising Adoption of Bitcoin in Commerce
Alongside the growing number of officially approved exchanges, consumer and merchant adoption of Bitcoin continues to rise across Japan. Recently, a major used-car dealership announced it would begin accepting cryptocurrency payments. A growing number of retail stores are also starting to embrace digital currency transactions.
This trend signals increasing mainstream acceptance and points toward a more integrated role for cryptocurrencies in Japan’s economy.
Frequently Asked Questions
What does it mean for an exchange to be approved by Japan’s FSA?
An FSA-approved exchange has met strict regulatory standards related to security, operational integrity, and compliance. This offers users a higher degree of protection and legal clarity.
Why are Japanese crypto exchanges expanding overseas?
Due to high domestic competition and limited trading options, many exchanges are seeking growth in less saturated markets. Overseas expansion also helps improve liquidity and trading volume.
Can I trade cryptocurrencies other than Bitcoin on Japanese exchanges?
While some platforms offer multiple cryptocurrencies, newly licensed exchanges like Bitocean may initially support only Bitcoin. Always check the list of supported assets on each exchange.
Is it safe to use a licensed exchange in Japan?
Licensed exchanges must comply with rigorous regulatory requirements, including fund segregation and cybersecurity measures. This makes them generally safer than unregulated platforms.
How can I start trading Bitcoin in Japan?
You can sign up with any FSA-licensed exchange, complete identity verification, deposit funds, and begin trading. It's important to use secure internet practices and enable two-factor authentication.
Are businesses in Japan really accepting Bitcoin?
Yes, an increasing number of retailers and service providers—from electronics stores to car dealerships—now accept Bitcoin as a valid payment method.