Domestic CEX sales-counter vs exchange business-model economics

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This entry sits under exchanges index. Read it against Domestic CEX and point-economy integration model for peer / contrast context and FSA crypto-asset exchange business registration system: numbering, local-finance-bureau jurisdiction, and registration requirements for the broader system / regulatory boundary.

Overview

Domestic Japanese CEXs have a distinctive structure of running 2 service formats in parallel. The sales counter (hanbaijo) = an OTC-spread model in which the CEX itself trades against the customer on a principal basis vs the exchange / order-book market (torihikijo) = a maker/taker fee model in which customers’ limit orders match against each other on an order book. The two differ greatly in revenue structure, regulatory positioning, and assumed customer base, and it is common for the same CEX to offer both services side by side.

Sales-counter model (mainstream)

• Revenue source: bid/ask spread (typically 2-5% · 7-10% depending on the asset)
• CEX’s position: market maker · holds inventory risk + hedging obligation
• Customer UX: buy in 1 click · directly specify quantity/amount · market price is hard to see
• Major adopters: jp-exchange-coincheck (sales-counter mainstay) · jp-exchange-gmo-coin · DMM Bitcoin (former) · jp-exchange-rakuten-wallet · jp-exchange-mercoin · OKJ

Exchange model (for the experienced)

• Revenue source: maker/taker fee (typically 0.01-0.20%) · overwhelmingly thin
• CEX’s position: only operates the matching engine · holds no inventory position, neutral
• Customer UX: order-book information + limit/market orders · pro-oriented UI
• Major adopters: jp-exchange-bitflyer Lightning · jp-exchange-bitbank · GMO Coin exchange (coexists with the sales counter)

Economic implications

• The sales-counter spread ~3% is higher than the wholesale price ~0.5% of the MM (jp-crypto-market-maker-otc-layer B2C2 , etc.) — the CEX margin ~2.5% is a markup structure
• The “invisible fee” problem for retail customers — FSA supervisory guidelines continuously demand improved transparency
• Trading volume is sales counter > exchange, but profit rate is sales counter ≫ exchange — the main lever for domestic CEX profitability
• Overseas CEXs (global-cex-top10-comparison Binance / Coinbase, etc.) are predominantly maker/taker venues — Japan’s sales-counter model is an internationally unusual structure
• Pressure to shift toward the exchange model continues, driven by the lifting of the crypto-asset ETF ban (BTC spot ETF impact in Japan), tax reform (JP crypto-asset taxation details), etc. For best execution, see japan best execution SOR/PTS.