Japan is one of the world's largest banking and capital markets, supervised by the Financial Services Agency (FSA) and its regional Finance Bureaus. It was among the first countries to register crypto-asset exchanges by statute (2017) and has the world's largest retail margin FX market, with a statutory leverage cap.
Risk flagStandard
FATFNot listed
EU AML high-risk listNot listed
EU tax listNot listed
Licence regimes7
CurrencyJPY
S&P ratingA+
Next electiondue by 2028
Not on the FATF grey or black lists after the June 2026 plenary, not on the EU high-risk third country list (Delegated Regulation (EU) 2016/1675 as amended, latest by Delegated Regulation (EU) 2026/46), and not on Annex I of the EU tax list updated 17 February 2026. Checked 7 October 2026.
Government and politics
Government
Parliamentary constitutional monarchy
Emperor
Naruhito · since May 2019
Prime Minister
Sanae Takaichi (Liberal Democratic Party)
Governing parties
Liberal Democratic Party, Japan Innovation Party (Nippon Ishin no Kai)
Last election
House of Representatives snap election (LDP won 316 of 465 seats), 8 February 2026
Next election
House of Councillors election, due by 2028. Regular upper house election due in summer 2028; the lower house term runs to 2030
Legislature
National Diet: House of Representatives (465 seats) and House of Councillors (248 seats)
Legal system
Civil law based on the German model, with Anglo-American influence
Economy and finance
Population
123.4m (2025)
GDP
USD 4.4tn (2025)
GDP per person
USD 35,973 (2025)
Currency
Japanese yen (JPY), floating
Central bank
Bank of Japan
Credit rating
S&P A+ (stable) · Moody's A1 (stable) · Fitch A (stable) (as of June 2026)
The world's fourth-largest economy, driven by advanced manufacturing and exports, with Tokyo as a leading global financial centre and very large domestic savings funding high public debt.
Bank
Banking licence
Minimum capitalUSD 12.6m
TimelineNot published
AuthorityPrime Minister (delegated to the FSA Commissioner)
JPY 2 billion minimum stated capital (Banking Act Enforcement Order art 3); a foreign bank branch must hold assets in Japan of JPY 2 billion (art 47-2 of the Act)
Law
Banking Act (Act No. 59 of 1981), arts 4 and 5; Order for Enforcement of the Banking Act, art 3
Passporting
No passporting
Key requirements
Joint stock company with board of directors and statutory auditors or equivalent
Sufficient financial base and sound income and expenditure outlook
Knowledge and experience to carry on banking business properly, and social credibility
Foreign banks may operate through a licensed branch
Funds transfer service provider registration (Type I, II, III)
Minimum capitalNot published
TimelineNot published
AuthorityFSA (via the local Finance Bureau)
Law
Payment Services Act (Act No. 59 of 2009), arts 36-2 and 37; Payment Services Act Enforcement Order, art 12-2
Passporting
No passporting
Key requirements
Type II covers transfers of up to JPY 1 million per transfer; Type III up to JPY 50,000; Type I covers larger transfers and needs an approved business implementation plan
Full protection of funds in transit by deposit with the official depository, bank guarantee or trust
Adequate financial base and systems, AML/CFT controls
Allows non-banks to carry on exchange transactions despite Banking Act art 4
Financial instruments business registration (Type I and investment management)
Minimum capitalUSD 316k
TimelineNot published
AuthorityFSA (via the local Finance Bureau)
JPY 50 million capital and JPY 50 million net assets for Type I financial instruments business and for investment management (JPY 10 million for Type II business); JPY 500 million or JPY 3 billion for underwriting business
Law
Financial Instruments and Exchange Act (Act No. 25 of 1948), arts 28, 29, 29-4 and 46-6; FIEA Enforcement Order, arts 15-7 and 15-9
Passporting
No passporting
Key requirements
Joint stock company with board of directors and audit body for Type I
Capital adequacy ratio of at least 120 percent for Type I operators (FIEA art 46-6)
Personnel with sufficient knowledge and experience; compliance systems
Membership of an authorised self-regulatory organisation (JSDA, FFAJ or others) or equivalent rules
Financial Services Agency (FSA) · websitebanks, E-money institutions, Payment service providers, Virtual asset service providers (VASPs), Investment firms, FX brokers
Gaming: there is no online gambling licence; gambling is a crime under the Penal Code unless specifically authorised by statute (public sports such as horse, bicycle, boat and motorcycle racing, and lotteries). Casinos may only be operated inside an Integrated Resort licensed under the IR Implementation Act. Registration timelines are not fixed by statute; the FSA uses a standard processing period that we did not confirm from an official page. The FSA has discussed moving crypto-assets from the Payment Services Act to the Financial Instruments and Exchange Act; we did not confirm the status of any amending legislation as of 2026-10-07. Statutory figures were read from the Japanese law texts on e-Gov (laws.e-gov.go.jp); English translations were not accessible.
General information
About Japan
Natural Earth boundaries. Map is indicative.
Status
Sovereign state
Capital
Tokyo
Area
377,915 km²
Official languages
Japanese
Time zone
UTC+09:00
Main exports
cars
integrated circuits
machinery
vehicle parts
construction vehicles
Main export partners
United States
China
Taiwan
South Korea
Hong Kong
Sources for the country information(8)
Country information checked 9 October 2026. Licensing data updated 7 October 2026. Information only, not legal advice; requirements change. Regulatory notice.
