bitbank Review 2027: Fees, Volume and Safety

bitbank was founded in Tokyo in May 2014 by Noriyuki Hirosue, who remains chief executive. It registered as a crypto-asset exchange service provider when Japan introduced its licensing regime in 2017. Over the following years it built a reputation among Japanese traders for strong liquidity in altcoins, particularly XRP, in which it has often ranked first in the country by volume.

The company has attracted investment from established Japanese firms, and it set up a joint venture with a major trust bank to provide digital asset custody for institutions. It has also announced its intention to list its shares on the Tokyo Stock Exchange.

Japanese exchanges usually offer two services. The "sales office" sells coins directly to customers at a quoted price with a wide spread. The "exchange" lets customers trade with each other on an order book at much lower cost. At many platforms, only a few coins are available on the exchange, and the rest must be bought through the sales office.

bitbank takes a different approach. All of its listed coins, roughly forty, can be traded on the order book against the yen. A sales office exists for those who want simplicity, but nobody is forced to use it.

For a trader this means:

• Transparent prices for every coin.
• Narrow spreads in the liquid pairs.
• The ability to place limit orders in altcoins that are otherwise available in Japan only at a mark-up.

• Spot trading on the order book for all listed coins.
• Margin trading, introduced in recent years within the two-times leverage limit set by Japanese law.
• Lending, in which customers lend coins to bitbank for a year in exchange for a fixed rate.
• A capable trading interface with TradingView charts on the web and in the app.
• An API widely used by Japanese algorithmic traders.

The mobile app is highly rated in Japan and offers the same order types as the website.

bitbank's lending programme invites customers to lend coins to the company for twelve months at a stated annual rate. It is important to understand the legal nature of this. Lent coins are no longer in segregated custody. The customer becomes an unsecured creditor of bitbank for the term. If the company failed, lenders would rank with other creditors.

The risk is small for a well-capitalised, regulated firm. It still exists, and the coins cannot be sold during the term, whatever happens to the price. Lend only what you intended to hold anyway, and keep the share modest.

bitbank serves residents of Japan. Registration requires Japanese identification, which can be verified online with a smartphone, and a domestic bank account. Non-residents cannot open accounts.

Support is provided in Japanese through an enquiry form and chat. The help pages are detailed.

One reason bitbank is well known outside Japan is its XRP market. Japanese investors have long held XRP in large amounts, and bitbank's XRP/JPY pair has frequently been among the most actively traded XRP markets in the world. The exchange also has strong order books in several other coins that Japanese traders favour.

For Japanese residents who trade altcoins, this depth, combined with maker rebates, is the main argument for choosing bitbank over a rival.

Gains on crypto are treated as miscellaneous income for individual taxpayers and taxed at progressive rates together with other income. Exchanges of one coin for another are taxable events. bitbank provides annual transaction reports. Because maker rebates are income too, active traders should keep complete records. Reform of the tax system for crypto has been discussed for several years, so confirm the rules for the current tax year.

Strengths:

• Every coin on an order book.
• Maker rebate and low taker fee.
• No history of hacks.
• Deep liquidity in XRP and other popular altcoins.
• Strict Japanese regulation.

Weaknesses:

• Available to Japanese residents only.
• Around forty coins, a short list by global standards.
• Limited leverage, as the law requires.
• An interface that suits traders more than complete beginners.

bitbank is ideal for Japanese residents who trade actively or who are willing to learn limit orders in order to cut costs. It is also a good choice for long-term investors who want to accumulate altcoins without paying sales-office spreads.

Total beginners may find a simpler app easier at first, though the savings from learning bitbank's exchange screen are worth the effort.

bitFlyer has the deepest bitcoin market and a long record, but many of its altcoins are available only through the sales office. Coincheck has the most popular beginner app and the same limitation. bitbank's order books for all coins and its rebate for makers give it the lowest trading costs of the three for altcoins. For bitcoin alone, the differences are small.

• Use limit orders and be patient; let the rebate work for you.
• Check the order book before placing a large market order.
• Turn on two-factor authentication at once.
• Download your annual report for tax purposes.
• Treat lending as a separate decision with its own risk.