Key Takeaways
- Cryptocurrencies are recognized as “crypto-assets” under Japan’s Payment Services Act (PSA), with strict operational and reporting standards for businesses.
- Cryptocurrency gains are taxed as miscellaneous income in Japan, with rates up to 55%, depending on total income.
- User adoption of crypto in Japan is expected to reach 15.93% by 2025.
- Major stores like Bic Camera, Hackers Bar, and Yukizaki accept crypto, making it easy to pay with Bitcoin and other digital currencies.
- Crypto wallets and crypto-backed cards (like UPay) are commonly used for payments. Crypto ATMs are also available in cities like Tokyo and Osaka for easy withdrawals.
An Overview of Spending Crypto in Japan
Japan has consistently stayed ahead in the cryptocurrency space, playing a key role in the global digital payment scene. With user adoption set to hit 15.93% by 2025, its influence continues to grow.
“The number of users in the Cryptocurrencies market in Japan is expected to reach 19.43m users by 2025.”
This progress comes as no surprise, given that Japan made history in 2017 by becoming the first country to officially recognize Bitcoin as a legal payment method under the Payment Services Act (PSA).
This bold regulatory move not only strengthened consumer trust but also encouraged major businesses like Bic Camera to embrace crypto transactions.
Even though Japan is ranked 23rd in the 2024 Chainalysis Global Adoption Index, it’s still leading the way in advancing digital payments.
A significant step in this direction is the launch of Japan’s first cryptocurrency-backed credit card in 2025. This is in collaboration between Slash Vision Labs and a yet-to-be-named Japanese credit card issuer.
This move further emphasizes Japan’s commitment to making crypto payments more accessible while maintaining strict adherence to financial regulations.
Here’s a look at some of the best places to spend crypto in Japan.
Best Places to Spend Crypto in Japan
| S/N | Best Places to Spend Crypto in Japan | Category |
| 1 | Bic Camera | Electronics |
| 2 | Hackers Bar | Bar |
| 3 | Mercari | Online Marketplace |
| 4 | Zen Market | Online Shopping |
| 6 | Yukizaki | Luxury Jewelry Store |
| 5 | Mezzo | Nightlife |
| 6 | Yamada Denki | Electronics |
Bic Camera
Source: Retail News Asia
Bic Camera is one of Japan’s leading electronics retailers, known for a wide range of products including cameras, phones, and computer goods. In addition to its extensive selection, Bic Camera also accepts cryptocurrency payments in the form of Bitcoin only, making it a top choice for crypto enthusiasts.
While Bic Camera offers international shipping for in-store purchases, online orders are limited to Japan. Therefore, overseas customers must visit the store to get items shipped abroad.
Hackers Bar
Source: Metropolitan Japan
Hackers Bar, located in Roppongi, is one of Tokyo’s first bars to accept cryptocurrency payments. This tech-focused bar attracts a unique crowd, from blockchain enthusiasts to crypto lovers.
Thus, it creates a relaxed atmosphere for like-minded people to connect and the bar accepts Bitcoin and Bitcoin Cash. It’s a must-visit spot if you are looking to combine nightlife with the tech world.
Mercari
Mercari, one of Japan’s largest e-commerce platforms, is now one of the best places to spend crypto in Japan. With Bitcoin (BTC) payments now accepted on its flea market app, users can seamlessly buy and sell pre-loved items using crypto. This platform also serves as the best place for decluttering or hunting for unique finds.
Zen Market
Zen Market is an online shopping service that lets you order exclusive Japanese products and have them shipped internationally, all paid for with your preferred cryptocurrency.
With over five years of experience, ZenMarket has successfully delivered millions of Japanese goods worldwide. They currently accept Bitcoin, Litecoin and Ethereum, giving you several options to pay with. This makes it an excellent option for getting a piece of Japan, even if you’re unable to visit in person.
Yukizaki
Yukizaki, also called “Gem Castle,” is a high-end store in Japan specializing in watches and jewelry. The store is known for its premium selection and accepts Bitcoin, Bitcoin Cash, and Ethereum. This makes it an excellent spot for those looking to buy high-quality watches and jewelry.
Mezzo
Mezzo is a trendy, upscale bar located in the heart of Roppongi, making it a great spot for pre-game drinks. You can enjoy a wide selection of beverages, including champagne, cocktails, Japanese whiskey, and draft beers.
The first floor features LED lighting and a DJ playing mellow tunes, perfect for conversation. For a more exclusive experience, you can head to the VIP section on the second floor.
This VIP section offers private tables, special drinks, and gourmet food like grade A5 wagyu steak, and you can always pay with Bitcoin Cash afterwards.
Yamada Denki
Yamada Denki, one of Japan’s biggest electronics stores, also accepts Bitcoin payments at two stores in Tokyo, with plans to expand nationwide. If you’re in the market for new gadgets or home appliances, you can now use your crypto to pay at the store.
Tools for Spending Crypto in Japan
In Japan, spending crypto has become easier thanks to various tools designed to make digital payments easier. Here are some of the best tools:
Crypto Cards
One of the easiest ways to spend your crypto in Japan is through a crypto-backed card. UPay is a great example, allowing users to convert their digital currencies into yen or use them directly for purchases.
Crypto cards like UPay give you the flexibility to spend your crypto anywhere, just like a traditional debit or credit card.
Crypto Wallets
Another simple way to manage your crypto in Japan is by using a digital wallet. Wallets like UPay also provide a safe place to store your crypto while allowing you to easily access and transfer funds for purchases. With these wallets, you can keep your digital assets secure and ready for quick use at any time.
Crypto ATMs
If you prefer withdrawing cash, Japan has a growing network of crypto ATMs. You can find them in major cities like Tokyo and Osaka, particularly in places like Roppongi and Shibuya.
These ATMs allow you to convert your crypto into yen, making it simple to access your funds.
Tips for Spending Crypto in Japan
Source: Freepik
Spending crypto in Japan is straightforward, but there are a few things to keep in mind to ensure smooth transactions and avoid legal or financial issues. Here are some key tips:
Know the Legal and Tax Implications
Cryptocurrency is legally recognized as property in Japan, classified as “crypto-assets” under the Payment Services Act (PSA). This means crypto transactions are subject to specific regulations, and any gains made from using crypto, whether through selling, trading, or purchases can be taxed.
For individuals, gains are taxed as miscellaneous income, with rates ranging from 5% to 45%, including local taxes. Furthermore, businesses dealing in crypto must also comply with operational and reporting standards.
Choose Secure Payment Methods
There are multiple ways to spend crypto in Japan, from crypto-backed debit cards to digital wallets and ATMs. UPay is a reliable option, allowing users to make payments easily.
When selecting a payment method, ensure it supports yen conversions and is widely accepted at local businesses.
Use Registered Crypto Exchanges
Before spending crypto, make sure you’re using a government-approved exchange. In Japan, all exchanges must be registered with the Financial Services Agency (FSA).
These exchanges must also follow strict cybersecurity and anti-money laundering (AML) regulations. By doing this, you can protect your assets and ensure your transactions comply with local laws.
Stay Updated on Regulations
Japan has clear regulations around crypto, however policies can change. For example, corporate-held crypto is no longer taxed on unrealized gains as of 2024, encouraging business investment.
Therefore, keeping up with regulatory updates ensures you remain compliant and make informed financial decisions.
Use Verified Crypto ATMs
If you need to withdraw cash, head to a verified crypto ATM. Japan has a few, with locations in Tokyo and Osaka, including those operated by BitFlyer.
Challenges of Spending Crypto in Japan
Source: Freepik
While Japan has embraced cryptocurrency, several challenges still make everyday transactions difficult. Here are some key issues:
Strict Regulatory Compliance
Japan has some of the world’s most well-defined crypto regulations, ensuring consumer protection but also creating compliance burdens.
Businesses accepting crypto must register with the Financial Services Agency (FSA) and adhere to strict anti-money laundering (AML) and counter-terrorism financing (CFT) rules. This extra layer of regulation can discourage businesses from embracing crypto payments.
Tax Complexity
Cryptocurrency gains in Japan are classified as miscellaneous income and taxed at progressive rates up to 45%, including local taxes. This can make crypto transactions costly, especially for frequent users.
Keeping detailed records of each taxable event, such as selling crypto, trading one token for another, or making purchases, is necessary to comply with tax laws.
“Japan’s crypto asset tax system is stricter than other countries, which is hindering Japan’s competitiveness.”
Security Risks
Despite blockchain’s security and well-defined regulations, centralized exchanges and wallets remain targets for cyberattacks. The 2018 Coincheck breach, where $530 million in NEM tokens were stolen, remains one of the largest crypto hacks in history.
While regulations have since tightened, concerns over exchange security still make some users reluctant to transact in crypto.
“I never thought this kind of thing would happen with Japan’s developed legislation.”
Price Fluctuations
The value of cryptocurrencies can shift rapidly, making it hard for both businesses and individuals to use them confidently.
Some merchants that initially accepted crypto have stopped due to concerns over unpredictable prices. Many consumers also hesitate to use digital assets for purchases, fearing sudden value drops.
Preference for Traditional Payment Methods
Despite being a tech-forward nation, Japan still has a strong cash culture, with many consumers favoring credit cards, bank transfers, and mobile payment apps over crypto.
This cultural preference means that, even when crypto payments are available, they are not always the preferred option.
Conclusion
Japan has made significant strides in integrating cryptocurrency into its economy. This is evident as major retailers are embracing digital assets, and innovative payment solutions are making transactions more seamless.
However, challenges like price volatility, security concerns, and strict regulations continue to pose problems. Despite these obstacles, crypto adoption in Japan continues to grow.
Nonetheless, if you are looking to experience the convenience of digital payments, the best places to spend crypto in Japan include top restaurants, online platforms, and more.
With ongoing advancements, spending crypto in Japan could soon become as common as using traditional payment methods.
Frequently Asked Questions(FAQs)
Can you spend cryptocurrency in Japan?
Yes, Japan allows cryptocurrency payments at select stores, restaurants, and online platforms. Businesses like Bic Camera, Yukizaki, and Hackers Bar accept crypto, making digital payments convenient for locals and tourists.
Are there any legal restrictions on spending crypto in Japan?
Cryptocurrency payments are legal in Japan, but businesses accepting crypto must register with the Financial Services Agency (FSA) and comply with regulatory standards. While crypto can be used for purchases, it is not considered legal tender like the yen.
Are there any transaction fees when using cryptocurrency for payments in Japan?
Transaction fees depend on the cryptocurrency used and the payment processor. Some merchants may include a small processing fee, while crypto transactions themselves may have network fees based on blockchain congestion.
What tools can I use to spend cryptocurrency in Japan?
In Japan, you can use crypto wallets and crypto cards to make payments. Popular wallets like UPay allow you to store and spend crypto seamlessly. Additionally, crypto-backed credit cards let you spend your digital currency just like traditional cards. Crypto ATMs are also available in major cities like Tokyo, offering another way to convert and spend crypto easily.
