Compared with exchanges registered in Japan, overseas crypto exchanges list far more assets and offer a wider range of products, such as leveraged futures and copy trading. On the other hand, exchanges without FSA registration fall outside Japan's investor-protection framework, so the route to help and any compensation work differently.
This guide organises the differences under three headings - what you can do, how you are protected and how the procedures work - and lists what to confirm before opening an account.
Main differences between overseas and domestic exchanges
Both are venues for buying and selling crypto assets, but they differ substantially in the products offered, leverage caps, number of listed assets and the investor-protection framework.
| Item | Overseas exchange | Domestic exchange |
|---|---|---|
| FSA registration | Often not registered | Registration as a crypto-asset exchange service provider required |
| Listed assets | Hundreds to thousands | Typically a few dozen |
| Futures and leverage | Tens to hundreds of times, depending on the pair | Margin trading capped at 2x in principle |
| Yen deposits | Often unsupported (crypto, card or P2P instead) | Bank transfer and instant deposit |
| Investor protection | Depends on each exchange's terms and proof of reserves | Segregated custody and statutory supervision |
Conditions differ by exchange. Treat the official pages as the source for any specific figure.
What you can do on an overseas exchange
- Spot trading: buy and hold the asset itself
- Perpetual futures: post margin and trade the price difference with leverage, with no expiry
- Copy trading: automatically replicate other users' trades
- Automation such as grid trading and API trading
With spot you cannot lose more than what you hold; with futures a position is liquidated once margin falls below the maintenance level and you can lose the margin posted. Get used to spot first and consider futures only after you understand the mechanics.
Understand how protection differs
Japan's FSA publishes warnings about operators that provide crypto-asset exchange services to residents of Japan without registration. There is no rule that penalises a resident for using an overseas exchange, but domestic protection schemes do not apply.
- Can the operating entity and registration be confirmed in the terms of use or legal pages?
- Is the custody of client assets explained (for example a published proof of reserves)?
- Are self-protection features such as two-factor authentication and withdrawal whitelists available?
- Is there a Japanese-language help centre or contact route?
Overseas exchanges can suspend or restrict service to users in a specific country when regulation changes. Check official announcements regularly and avoid leaving assets on an exchange for long periods.
Decide these points before registering
- 01Decide your purpose
Holding spot, trading short-term moves with futures or trying copy trading each call for different comparison points.
- 02Check how you will fund the account
Most overseas exchanges do not accept yen directly. The usual routes are transferring crypto bought on a domestic exchange, or buying with a card or via P2P.
- 03Test deposits and withdrawals with a small amount
After verification, deposit a small amount and complete one withdrawal to confirm the steps and timing.
Frequently asked questions
Q. Is it illegal to use an overseas exchange?
A. There is no rule that penalises a resident of Japan for using an overseas exchange. However, unregistered operators fall outside domestic investor protection, and the FSA publishes warnings about them. Decide with the risks in mind.
Q. Can I deposit yen directly?
A. Only a few overseas exchanges accept yen bank transfers. Transferring crypto bought on a domestic exchange, or buying crypto with a card or via P2P, is the usual route. Check fees and timing for each method in the exchange's help centre.
Q. Can I use a domestic exchange alongside an overseas one?
A. Yes. Many users handle yen deposits and withdrawals on a domestic exchange and trade a wider range of spot and futures products overseas. Always confirm the address and network combination when transferring.
Sources and conditions
FX Textbook is an independent information site, not an exchange or a provider of personal investment advice. Crypto-asset trading involves risk: price moves, liquidation of leveraged positions, transfer errors and exchange operating risk can result in the loss of some or all invested capital.
NEXT STEP
Once you know the mechanics, compare the exchanges.
Spot and futures fees, maximum leverage, liquidation rules and Japanese-language support, organised exchange by exchange.
Listed exchanges
