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The short answer: it's the law.
Japan's Penal Code, specifically Article 175, prohibits the distribution of obscene materials. Courts have consistently interpreted explicit depictions of genitalia as falling under this prohibition. Rather than face criminal prosecution, studios apply pixelated censorship — called "mosaic" — to any genitalia visible in their productions.
This has been the norm since the late 1970s, when the VHS home video market made adult content widely distributable and the government needed a practical enforcement mechanism. The mosaic became the industry-wide standard for compliance, and it has stayed that way ever since.
A few things are worth understanding here. The law applies to distribution within Japan, not specifically to content produced in Japan for export. This is why "uncensored" JAV exists — it's typically produced by studios specifically for overseas markets and distributed through channels outside Japanese legal jurisdiction. These are minority releases. The vast majority of JAV you'll encounter is censored.
There's an ongoing conversation within Japan about whether Article 175 still makes sense, given the obvious workaround the overseas market represents. But reform hasn't gained real legislative traction, and the entertainment industry hasn't pushed hard for change publicly.
For most viewers outside Japan, the censorship becomes a background element you stop actively noticing fairly quickly.
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