Financial Instruments and Exchange Act

The Prime Minister may have relevant officials make the following dispositions in order to conduct the necessary investigation into a case concerning an administrative monetary penalty under the provisions of Article 172-12, paragraph (1), Article 173, paragraph (1);, Article 174, paragraph (1);, Article 174-2, paragraph (1);, Article 174-2-2, paragraph (1), Article 174-3, paragraph (1);, Article 175, paragraph (1) (including as applied mutatis mutandis pursuant to paragraph (910) of that Article) or paragraph (2) , Article 175-2, paragraph (1) (including as applied mutatis mutandis pursuant to paragraph (14) of that Article) or paragraph (2) (including as applied mutatis mutandis pursuant to paragraph (15) of that Article), Article 175-2175-3, paragraph (1) (including as applied mutatis mutandis pursuant to paragraph (1312) of that Article), paragraph (2) of that Article (including as applied mutatis mutandis pursuant to paragraph (13) of that Article) or paragraph (3) of that Article, Article 175-4, paragraph (1) (including as applied mutatis mutandis pursuant to paragraph (19) of that Article), paragraph (2) of thethat Article (including as applied mutatis mutandis pursuant to paragraph (1420) of that Article) or paragraph (3) of that Article (including as applied mutatis mutandis pursuant to paragraph (21) of that Article), or Article 175-5:

Section 2 Trial Procedures, etc.

When the Prime Minister has received, from a person set forth in the first column of the table in Article 185-7, paragraph (22), a report of facts falling under the provisions set forth in the second column of that table and the submission of materials, as provided by Cabinet Office Order, the Prime Minister is to promptly notify, as provided by Cabinet Office Order, the person who made the report of facts and submitted the materials (referred to as the "reporting person" in the following paragraph and the following Article) of that fact and of whether that report of facts and submission of materials was made before the disposition set forth in the third column of that table was carried out.

Except where the Prime Minister has reached the agreement set forth in paragraph (1) of the following Article (including an agreement the content of which is to perform the acts set forth in the items of paragraph (2) of that Article), the Prime Minister may, until making a decision to commence trial procedures for a case concerning the facts for which the report and submission of materials under the provisions of the preceding paragraph have been received, additionally request the reporting person to report facts or submit materials concerning the case.

When a reporting person has made an application to the Prime Minister for consultation on any of the following acts, the Prime Minister is to hold consultations with the reporting person, and, taking into account the content of the facts relating to the particulars specified by Cabinet Office Order as contributing to the clarification of the truth of the case, which are obtained from the facts and materials reported or submitted by the reporting person pursuant to the provisions of paragraph (1) of the preceding Article and are expected to be obtained from the facts or materials that the reporting person will report or submit through the act set forth in item (i), and other circumstances, may, as provided by Cabinet Office Order, reach an agreement with the reporting person the content of which is that the reporting person is to perform the act set forth in item (i) and the Prime Minister is to perform the act set forth in item (ii):

the following acts:

in the consultation, to report or submit, immediately after the agreement, the facts or materials that the reporting person offered to report or submit to the Prime Minister;

in relation to the facts or materials obtained through the report of facts and submission of materials under the provisions of paragraph (1) of the preceding Article or through the act set forth in (a), at the request of the Prime Minister, to report facts, submit materials, consent to an inspection by the Prime Minister of the reporting person's articles (referred to as an "inspection" in (c) and in item (i), (b) of the following paragraph) or perform other acts; and

in relation to the facts ascertained through an investigation by the Prime Minister, at the request of the Prime Minister, to report facts, submit materials, consent to an inspection or perform other acts;

to reduce, from the administrative monetary penalty amount before reduction, the amount obtained by multiplying the amount set forth in the fourth column of the table in Article 185-7, paragraph (22), in accordance with the category of persons set forth in the first column of that table (hereinafter referred to as the "administrative monetary penalty amount before reduction" in this item and in item (ii) of the following paragraph), by a specific ratio, not exceeding 30/100, determined in the agreement (referred to as the "specified ratio" in item (ii) of the following paragraph and in Article 185-7, paragraph (23), items (ii) and (iii)).

In the case where the facts or materials obtained through the act set forth in item (i) of the preceding paragraph, as explained by the reporting person in the consultation under the preceding paragraph, are necessary for the prompt clarification of the truth of the case, and, in addition, it is found that there is a high probability that the reporting person will, after the agreement under the preceding paragraph, come to know of new facts or materials concerning the case that relate to facts relating to the particulars specified by Cabinet Office Order in the preceding paragraph, if the Prime Minister finds that there are circumstances under which a certain period after that agreement is required for the report or submission of those new facts or materials, the Prime Minister may request the reporting person, in the consultation, to include in the content of that agreement that the reporting person is to perform the act set forth in item (i) in addition to the act set forth in item (i) of the preceding paragraph, and to make it the content of that agreement that the Prime Minister is to perform the act set forth in item (ii) in place of the Prime Minister performing the act set forth in item (ii) of the preceding paragraph.

the following acts:

after that agreement, upon coming to know of those new facts or materials, to immediately report or submit those new facts or materials to the Prime Minister;

in relation to the facts or materials obtained through the act set forth in (a), at the request of the Prime Minister, to report facts, submit materials, consent to an inspection or perform other acts; and

to reduce, from the administrative monetary penalty amount before reduction, the amount obtained by multiplying the administrative monetary penalty amount before reduction by a rate determined by the Prime Minister by evaluating the content of the facts relating to the particulars specified by Cabinet Office Order in the preceding paragraph that were obtained through that act, within a range with the specified ratio as the lower limit and, as the upper limit, the rate obtained by adding to the specified ratio the rate determined in the agreement, as provided by Cabinet Office Order, as the rate by which the administrative monetary penalty amount before reduction may be further reduced in return for the reporting person performing the act set forth in the preceding item (limited to a rate not exceeding 30/100) (referred to as the "post-evaluation rate" in paragraph (4) and in Article 185-7, paragraph (23), items (ii) and (iii)).

The agreement under paragraph (1) (including an agreement the content of which is to perform the acts set forth in the items of the preceding paragraph; the same applies in the following paragraph, paragraph (6), and Article 185-7, paragraph (22), paragraph (23), items (ii) and (iii), and paragraph (24), item (iii)) is to be made by clarifying its content in a document signed, or bearing the names and seals, of the Prime Minister and the reporting person.

When the Prime Minister makes the agreement under paragraph (1) the content of which is to perform the act set forth in paragraph (2), item (ii), the Prime Minister is to state, in the document under the preceding paragraph, the method of the evaluation by the Prime Minister and of the determination of the post-evaluation rate prescribed in that item.

In the consultation under paragraph (1), the Prime Minister may request the reporting person to explain the outline of the facts or materials that the reporting person can report or submit through the act set forth in item (i), (a) of that paragraph.

In the case where the agreement under paragraph (1) has not been reached (excluding the case where, the reporting person not having complied with the request under paragraph (2), an agreement the content of which is only to perform the acts set forth in the items of paragraph (1) has been reached), the Prime Minister may not use as evidence a document or other article in which the Prime Minister has recorded the content of the explanation given by the reporting person in the consultation under that paragraph.

The time limit for applications for consultation and other procedures necessary for the consultation under paragraph (1) are specified by Cabinet Office Order.

In holding the consultation under paragraph (1), a reporting person may appoint a representative (limited to an attorney-at-law or legal professional corporation; referred to as a "specified agent" in the following paragraph and paragraph (10)).

In holding the consultation under paragraph (1), the Prime Minister is to inform the reporting person that is the other party to the consultation, in writing, that the reporting person may appoint a specified agent.

With regard to the application of the provisions of paragraphs (1) and (3) in the case where a reporting person has appointed a specified agent pursuant to the provisions of paragraph (8), the phrase "consultations with the reporting person" in paragraph (1) is deemed to be replaced with "consultations with the reporting person or the specified agent (meaning the specified agent prescribed in paragraph (8); the same applies in paragraph (3))", and the phrase "and the reporting person" in paragraph (3) is deemed to be replaced with "and the reporting person and the specified agent".

the fact which falls under Article 172-13;

the fact which falls under each paragraph of Article 172-14;

the fact which falls under Article 172-15, paragraph (1) (including as applied mutatis mutandis pursuant to paragraph (2) of that Article);

the fact which falls under Article 172-16, paragraph (1) (including as applied mutatis mutandis pursuant to paragraph (2) of that Article) or paragraph (3) (including as applied mutatis mutandis pursuant to paragraph (4) of that Article);

a fact that falls under each paragraph of Article 172-17;

a fact that falls under each paragraph of Article 172-18;

a fact that falls under Article 172-19, paragraph (1) (including as applied mutatis mutandis pursuant to paragraphs (3) and (5) of that Article) or paragraph (2) (including as applied mutatis mutandis pursuant to paragraphs (4) and (6) of that Article);

a fact that falls under Article 173, paragraph (1) (excluding that set forth in item (xiv)-2);

a fact that falls under Article 174, paragraph (1) (excluding that set forth in item (xiv)-2);

a fact that falls under Article 174-2, paragraph (1) (excluding that set forth in the following item);

a fact that falls under Article 174-2-2, paragraph (1);

a fact that falls under Article 175, paragraph (1) (including as applied mutatis mutandis pursuant to paragraph (910) of that Article) or paragraph (2) of that Article;

a fact which falls under Article 175-2, paragraph (1) (including as applied mutatis mutandis pursuant to paragraph (1314) of that Article) or paragraph (2) of that Article (including as applied mutatis mutandis pursuant to paragraph (1415) of that Article).;

a fact which falls under Article 175-3, paragraph (1) (including as applied mutatis mutandis pursuant to paragraph (12) of that Article), paragraph (2) (including as applied mutatis mutandis pursuant to paragraph (13) of that Article) or paragraph (3);

a fact which falls under Article 175-4, paragraph (1) (including as applied mutatis mutandis pursuant to paragraph (19) of that Article), paragraph (2) (including as applied mutatis mutandis pursuant to paragraph (20) of that Article) or paragraph (3) (including as applied mutatis mutandis pursuant to paragraph (21) of that Article); or

a fact which falls under Article 175-5.

Once five years have elapsed since the day on which the violation prescribed in public offering or secondary distribution of specified cryptoassets for which the publication of information on specified cryptoassets is required under the main clause of Article 17327-39, paragraph (1) ends, , or the general solicitation involving specified cryptoassets acquired by a qualified institutional investor for which the publication of information on specified cryptoassets is required under the main clause of paragraph (2) of that Article, was commenced, the Prime Minister may not issue a decision to commence trial procedures based on the occurrence ofconcerning the fact set forth in paragraph (1), item (xii) in connection with xi)-3 relating to that public offering or secondary distribution of specified cryptoassets or that violationgeneral solicitation involving specified cryptoassets acquired by a qualified institutional investor.

Once five years have elapsed since the day on which information on specified cryptoassets (including amended specified cryptoasset information, etc. relating to that information on specified cryptoassets) that contains false information regarding a material particular, or lacks information about a material particular that is required to be published, was published pursuant to the violation prescribed in provisions of the main clause of Article 17427-39, paragraph (1) ends, or the main clause of paragraph (2) of that Article (for the amended specified cryptoasset information, etc., the provisions of Article 27-52 or an order under the provisions of Article 27-57, paragraph (1)), the Prime Minister may not issue a decision to commence trial procedures based on the occurrence ofconcerning the fact set forth in paragraph (1), item (xiii) in connection withxi)-4 relating to that violationinformation on specified cryptoassets.

Once five years have elapsed since the day on which a violation the handling of the public offering or secondary distribution of specified cryptoassets prescribed in Article 174-227-39, paragraph (1) ends4) was commenced, the Prime Minister may not issue a decision to commence trial procedures based on the occurrence ofconcerning the fact set forth in paragraph (1), item (xiv) in connection with xi)-5 (limited to the fact that violationfalls under Article 172-15, paragraph (1)) relating to the handling of that public offering or secondary distribution of specified cryptoassets.

Once five years have elapsed since the day on which the violation set forth in information on specified cryptoassets (including amended specified cryptoasset information, etc. relating to that information on specified cryptoassets) that contains false information regarding a material particular, or lacks information about a material particular that is required to be published, was published pursuant to the provisions of Article 174-327-39, paragraph (1) ends4), the Prime Minister may not issue a decision to commence trial procedures based on the occurrence ofconcerning the fact set forth in paragraph (1), item (xv) in connection with xi)-5 (limited to the fact that violationfalls under paragraph (1) of Article 172-15 as applied mutatis mutandis pursuant to paragraph (2) of that Article) relating to that information on specified cryptoassets.

Once five years have elapsed since the day on which a purchase and sale, etc. prescribed in Article 166, paragraph (1) is conductedtime limit by which periodic information on specified cryptoassets was to be published, the Prime Minister may not issue a decision to commence trial procedures based on the occurrence ofconcerning the fact set forth in paragraph (1), item (xvi) in connection with xi)-6 (limited to the fact that purchase and sale, etcfalls under Article 172-16, paragraph (1)) relating to that periodic information on specified cryptoassets.

Once five years have elapsed since the day on which a purchase, etc. of periodic information on specified cryptoassets or extraordinary information on specified share certificatescryptoassets (including amended specified cryptoasset information, etc. relating to that periodic information on specified cryptoassets or related share certificates, etc. prescribed in extraordinary information on specified cryptoassets) that contains false information regarding a material particular, or lacks information about a material particular that is required to be published, was published pursuant to the provisions of Article 16727-50, paragraph (1) or a saleArticle 27-51 (for the amended specified cryptoasset information, etc. , the provisions of share certificates, etc. prescribed in that paragraph is made, Article 27-52 or an order under the provisions of Article 27-57, paragraph (1)), the Prime Minister may not issue a decision to commence trial procedures based on the occurrence ofconcerning the fact set forth in paragraph (1), item (xvi) in connection with xi)-6 (limited to the fact that purchase, etc. falls under paragraph (1) of Article 172-16 as applied mutatis mutandis pursuant to paragraph (2) of that Article, or paragraph (3) of that Article as applied mutatis mutandis pursuant to paragraph (4) of that Article) relating to that periodic information on specified cryptoassets or sale, etcextraordinary information on specified cryptoassets.

WhenOnce five years have elapsed fromsince the day when the violation prescribed in Article 175-2, paragraph (1) or (2) or theon which grounds arose requiring extraordinary information on specified act of providing information, etc. prescribed in paragraph (13) or (14)cryptoassets to be published pursuant to the provisions of that Article was conducted27-51, the Prime Minister may not issue a decision on the commencement ofto commence trial procedures concerning the facts specified fact set forth in paragraph (1), item (xvii) relatedxi)-6 (limited to the violation or the specified act of providing fact that falls under Article 172-16, paragraph (3)) relating to that extraordinary information, etc on specified cryptoassets.

Once five years have elapsed since the day on which the services for purchase and sale, etc. of cryptoassets were commenced for the specified cryptoasset relating to the most recent specified cryptoasset information, etc., the Prime Minister may not issue a decision to commence trial procedures concerning the fact set forth in paragraph (1), item (xi)-7 (limited to the fact that falls under Article 172-17, paragraph (1)) relating to that most recent specified cryptoasset information, etc.

Once five years have elapsed since the time limit by which the initial specified cryptoasset information or the latest specified cryptoasset information, etc. was to be published, the Prime Minister may not issue a decision to commence trial procedures concerning the fact set forth in paragraph (1), item (xi)-7 (limited to the fact that falls under Article 172-17, paragraph (2) or (3)) relating to that initial specified cryptoasset information or latest specified cryptoasset information, etc.

Once five years have elapsed since the day on which the services for purchase and sale, etc. of cryptoassets were commenced for the specified cryptoasset relating to the most recent specified cryptoasset information, etc. (including amended specified cryptoasset information, etc. relating to that most recent specified cryptoasset information, etc.) that contains false information regarding a material particular, the Prime Minister may not issue a decision to commence trial procedures concerning the fact set forth in paragraph (1), item (xi)-8 (limited to the fact that falls under Article 172-18, paragraph (1)) relating to that most recent specified cryptoasset information, etc.

Once five years have elapsed since the day on which the initial specified cryptoasset information or the latest specified cryptoasset information, etc. (including amended specified cryptoasset information, etc. relating to that initial specified cryptoasset information or latest specified cryptoasset information, etc.) that contains false information regarding a material particular was published pursuant to the provisions of Article 27-53, paragraph (2) or (3), the Prime Minister may not issue a decision to commence trial procedures concerning the fact set forth in paragraph (1), item (xi)-8 (limited to the fact that falls under Article 172-18, paragraph (2) or (3)) relating to that initial specified cryptoasset information or latest specified cryptoasset information, etc.

Once five years have elapsed since the day on which the services for purchase and sale, etc. of cryptoassets were commenced for the cryptoasset prescribed in Article 172-19, paragraph (1), the Prime Minister may not issue a decision to commence trial procedures concerning the fact set forth in paragraph (1), item (xi)-9 (limited to the fact that falls under Article 172-19, paragraph (1)) relating to the cryptoasset information relating to that cryptoasset.

Once five years have elapsed since the day on which the services for purchase and sale, etc. of cryptoassets were commenced for the cryptoasset relating to the cryptoasset information (including amended cryptoasset information, etc. relating to that cryptoasset information) that contains false information regarding a material particular, the Prime Minister may not issue a decision to commence trial procedures concerning the fact set forth in paragraph (1), item (xi)-9 (limited to the fact that falls under Article 172-19, paragraph (2)) relating to that cryptoasset information.

Once five years have elapsed since the day on which grounds arose requiring cryptoasset information or extraordinary cryptoasset information to be published pursuant to the provisions of Article 27-60, paragraph (2) or Article 27-61, the Prime Minister may not issue a decision to commence trial procedures concerning the fact set forth in paragraph (1), item (xi)-9 (limited to the fact that falls under paragraph (1) of Article 172-19 as applied mutatis mutandis pursuant to paragraph (3) or (5) of that Article) relating to that cryptoasset information or extraordinary cryptoasset information.

Once five years have elapsed since the day on which cryptoasset information or extraordinary cryptoasset information (including amended cryptoasset information, etc. relating to that cryptoasset information or extraordinary cryptoasset information) that contains false information regarding a material particular was published pursuant to the provisions of Article 27-60, paragraph (2) or Article 27-61 (for the amended cryptoasset information, etc., the provisions of Article 27-62 or an order under the provisions of Article 27-65, paragraph (1)), the Prime Minister may not issue a decision to commence trial procedures concerning the fact set forth in paragraph (1), item (xi)-9 (limited to the fact that falls under paragraph (2) of Article 172-19 as applied mutatis mutandis pursuant to paragraph (4) or (6) of that Article) relating to that cryptoasset information or extraordinary cryptoasset information.

Once five years have elapsed since the day on which the violation prescribed in Article 173, paragraph (1) (excluding the violation prescribed in Article 174-2-2, paragraph (2); the same applies in Article 185-7, paragraph (25)) ended, the Prime Minister may not issue a decision to commence trial procedures concerning the fact set forth in paragraph (1), item (xii) relating to that violation.

Once five years have elapsed since the day on which the violation prescribed in Article 174, paragraph (1) (excluding the violation prescribed in Article 174-2-2, paragraph (2); the same applies in Article 185-7, paragraph (25)) ends, the Prime Minister may not issue a decision to commence trial procedures based on the occurrence of the fact set forth in paragraph (1), item (xiii) in connection with that violation.

Once five years have elapsed since the day on which the violation prescribed in Article 174-2, paragraph (1) (excluding the violation prescribed in Article 174-2-2, paragraph (2); the same applies in Article 185-7, paragraph (25)) ended, the Prime Minister may not issue a decision to commence trial procedures concerning the fact set forth in paragraph (1), item (xiv) relating to that violation.

Once five years have elapsed since the day on which a violation prescribed in Article 174-2-2, paragraph (2) ends, the Prime Minister may not issue a decision to commence trial procedures based on the occurrence of the fact set forth in paragraph (1), item (xiv)-2 in connection with that violation.

Once five years have elapsed since the day on which the violation set forth in Article 174-3, paragraph (1) ends, the Prime Minister may not issue a decision to commence trial procedures based on the occurrence of the fact set forth in paragraph (1), item (xv) in connection with that violation.

Once five years have elapsed since the day on which a purchase and sale, etc. prescribed in Article 166, paragraph (1) is conducted, the Prime Minister may not issue a decision to commence trial procedures based on the occurrence of the fact set forth in paragraph (1), item (xvi) in connection with that purchase and sale, etc.

Once five years have elapsed since the day on which a purchase, etc. of specified share certificates, etc. or related share certificates, etc. prescribed in Article 167, paragraph (1) or a sale, etc. of share certificates, etc. prescribed in that paragraph is made, the Prime Minister may not issue a decision to commence trial procedures based on the occurrence of the fact set forth in paragraph (1), item (xvi) in connection with that purchase, etc. or sale, etc.

When five years have elapsed from the day when the violation prescribed in Article 175-2, paragraph (1) or (2) or the specified act of providing information, etc. prescribed in paragraph (14) or (15) of that Article was conducted, the Prime Minister may not issue a decision on the commencement of trial procedures concerning the facts specified in paragraph (1), item (xvii) related to the violation or the specified act of providing information, etc.

Once five years have elapsed since the day on which a purchase and sale, etc. of subject specified cryptoassets, etc. was made, the Prime Minister may not issue a decision to commence trial procedures concerning the fact set forth in paragraph (1), item (xviii) relating to that purchase and sale, etc. (limited to the fact that falls under Article 175-3, paragraph (1) (including as applied mutatis mutandis pursuant to paragraph (12) of that Article)).

Once five years have elapsed since the day on which a purchase and sale, etc. of subject cryptoassets, etc. was made, the Prime Minister may not issue a decision to commence trial procedures concerning the fact set forth in paragraph (1), item (xviii) relating to that purchase and sale, etc. (limited to the fact that falls under Article 175-3, paragraph (2) (including as applied mutatis mutandis pursuant to paragraph (13) of that Article)).

Once five years have elapsed since the day on which a sale, etc. of cryptoassets, etc. or a purchase, etc. of cryptoassets, etc. prescribed in Article 171-9, paragraph (1) was made, the Prime Minister may not issue a decision to commence trial procedures concerning the fact set forth in paragraph (1), item (xviii) relating to that sale, etc. of cryptoassets, etc. or purchase, etc. of cryptoassets, etc. (limited to the fact that falls under Article 175-3, paragraph (3)).

Once five years have elapsed since the day on which the violation prescribed in Article 175-4, paragraphs (1) through (3), or the specified act of providing information, etc. prescribed in paragraphs (19) through (21) of that Article, was conducted, the Prime Minister may not issue a decision to commence trial procedures concerning the fact set forth in paragraph (1), item (xix) related to the violation or the specified act of providing information, etc.

Once five years have elapsed since the day on which the violation, etc. prescribed in Article 175-5 ends, the Prime Minister may not issue a decision to commence trial procedures based on the occurrence of the fact set forth in paragraph (1), item (xx) in connection with that violation, etc.

Trial procedures (other than the decision to commence trial procedures and a decision under Article 185-7, paragraph (2129)) are conducted by a panel composed of three trial examiners; provided, however, that in a simple case, the procedures are conducted by a single trial examiner.