In general, there are no foreign exchange controls in Japan. Japan's Foreign Exchange and Foreign Trade Control Law, as amended, completely liberalized domestic and cross-border foreign exchange transactions. Hence, individuals and corporations are free to engage in capital transactions and settlements with foreign individuals and companies. The use of the authorized foreign exchange bank system, designated securities firms and authorized money exchanger systems for foreign exchange has been abolished.

There are no specific regulations restricting foreign investors' participation in Japan's bond market. For the Japanese Government Bonds market to promote diversification of its investor base, the Ministry of Finance has implemented a number of tax-related incentives geared towards nonresident individuals and other foreign investors, including foreign corporations.