First off, there are a few main ways to own Bitcoin.
- Buy at a Japanese exchange
The first and most common method is to purchase at a cryptocurrency exchange/sales office in Japan. You purchase Bitcoin by transferring Japanese yen to the cryptocurrency exchange/sales office. Under Japanese law, cryptocurrency exchanges are called "cryptocurrency exchanges." As of July 2023, there are 30 legally authorized cryptocurrency exchanges in Japan, but the amount of transactions is concentrated in a few major companies. The major ones are BitFlyer , CoinCheck, GMO Coin , bitbank , and DMM Bitcoin .
Exchanges/sales offices in Japan are protected by law (the Payment Services Act), so they can be said to be relatively safe. For example, when FTX, one of the largest cryptocurrency exchanges in the United States, went bankrupt in November 2022, FTX's Japanese subsidiary, FTX Japan, managed customer assets separately in accordance with Japanese law, so it was not affected by the collapse of FTX in the United States and customer assets were protected.
Domestic exchanges/sales offices are relatively safe, but the risk of being hacked is not zero for any exchange. If you buy Bitcoin, we recommend that you transfer it from the wallet of the virtual currency exchange/sales office to the wallet of your own computer/smartphone. It is no exaggeration to say that if you buy Bitcoin but leave it at a third-party exchange instead of putting it in your own wallet, half of the meaning of having Bitcoin is lost.
On the other hand, in April 2023, domestic exchanges in Japan introduced regulations related to virtual currency remittances called the "Travel Rule," which requires verification of the identity of the recipient when sending crypto assets. Some people say that this has made it more difficult to use domestic exchanges.
- Buying from an overseas exchange
Overseas cryptocurrency exchanges are also available. However, when purchasing cryptocurrency at an overseas exchange, there are very few exchanges that will accept transfers in Japanese yen, so you will need to convert the currency to US dollars and then make a bank transfer. Also, please be aware that some overseas exchanges do not provide services to Japanese people or Japanese residents. (The world's largest cryptocurrency exchange, Binance, has announced that it will cease providing services to Japanese residents on November 30, 2023, as it has acquired a Japanese cryptocurrency exchange and will provide services in Japan.)
In addition, since they are not protected by Japanese law, the Financial Services Agency is urging caution when using overseas exchanges as they are unregistered businesses .
As with domestic exchanges/sales offices, even if you buy Bitcoin at an overseas exchange, we recommend that you transfer the purchased Bitcoin to your own wallet, if possible, and store and manage it in your own wallet.
- Get it from a friend or acquaintance
It is also possible to get Bitcoin directly from friends or acquaintances. You will need a Bitcoin wallet address. Make sure to get it from a trustworthy friend or acquaintance. If you try to buy Bitcoin from a stranger or distant friend by sending Japanese yen, you may find that the stranger or distant friend has lost contact with you.
- Buy Bitcoin at an ATM
Bitcoin ATMs have been installed in many countries overseas. Just like regular ATMs, you can insert cash into these to purchase Bitcoin. Bitcoin ATMs have been installed in countries and regions close to Japan, such as Taiwan and Hong Kong. (You can check the locations of Bitcoin ATMs using "Bitcoin ATM Near Me Search." )
There used to be Bitcoin ATMs in Japan, but a legal change in 2017 required a license to sell virtual currencies, so it became impossible to install Bitcoin ATMs. Under Japanese law, virtual currency exchange businesses, including Bitcoin, are required to verify the identity of their customers, and Bitcoin ATMs that do not verify the identity of people buying Bitcoin, or where it is difficult to properly verify their identity, are considered to be in violation of the law and cannot be installed.
- Mining
We suggest that you mine Bitcoin and hold Bitcoin as an alternative to "buying Bitcoin" (1-4) above. Many people think that mining Bitcoin is difficult for ordinary people, but it is actually not that difficult.
- Play games and earn bitcoins
The last way to get Bitcoin is to play "Bitcoin-reward games." These games don't give you a lot of Bitcoin, but they can also help you deepen your knowledge of cryptocurrencies, including Bitcoin.
Here are some games where you can earn Bitcoin:
" Satoshi Quiz " is a website where you can earn Bitcoin by answering general knowledge quizzes. If you answer correctly, you will be rewarded with Bitcoin depending on the difficulty of the quiz.
" RollerCoin " is a Bitcoin mining simulation game. Players can learn the basics of Bitcoin mining. By playing the game, you earn points, which you can then use to virtually mine and receive Bitcoins as a result.
" Bitcoin Bounce " is another game where you can earn Bitcoin for free. This game is a mobile app where players bounce around in a virtual world and collect Bitcoins. Collect "tickets" that you earn through the game and participate in a lottery that is held periodically. If you win the lottery, Bitcoins will be sent directly to your wallet (Lightning wallet).
While these games allow you to earn Bitcoins completely free, they are a great way to spend time playing them, and the amount of Bitcoin you get is small. However, they are a fun way to learn about Bitcoins.
These are the main methods, but in order to own Bitcoin, you first need to have your own Bitcoin wallet. We explain recommended wallets in "What is the recommended wallet for storing Bitcoin?"