Financial Instruments and Exchange Act

when without having published information on specified cryptoassets under the provisions of Article 27-39, paragraph (4), the person handles the public offering or secondary distribution of specified cryptoassets prescribed in that paragraph, or violates the provisions of Article 31-3-227-54, paragraph (2) with respect to the information on specified cryptoassets;

the person, in violation of Article 27-39, paragraph (4) or Article 27-54, paragraph (3), publishes information on specified cryptoassets under the provisions of Article 27-39, paragraph (4) that contains a false statement regarding a material particular;

the person violates the provisions of Article 27-40, paragraph (1);

the person, in violation of Article 27-40, paragraph (2), provides information on specified cryptoassets under the provisions of paragraph (1) of that Article that contains a false statement regarding a material particular;

the person fails to publish extraordinary information on specified cryptoassets under the provisions of Article 27-51, or violates the provisions of Article 27-54, paragraph (1) with respect to the extraordinary information on specified cryptoassets;

with regard to a material particular, the person fails to publish amended specified cryptoasset information, etc. relating to information on specified cryptoassets, etc. under the provisions of Article 27-52, or violates the provisions of Article 27-54, paragraph (1) with respect to the amended specified cryptoasset information, etc.;

the person fails to publish amended specified cryptoasset information, etc. relating to information on specified cryptoassets, etc. under an order under the provisions of Article 27-57, paragraph (1), or violates the provisions of Article 27-54, paragraph (1) with respect to the amended specified cryptoasset information, etc.;

the person violates an order under the provisions of Article 27-57, paragraph (2);

when the person violates the provisions of Article 31-3-2;

when the person violates the provisions of Article 167-3 (including as applied mutatis mutandis pursuant to Article 171-16);

the person violates the provisions of Article 171-11;

the person violates the provisions of Article 171-13 or Article 171-14 in making a representation.

The provisions regarding the crimes referred to in paragraph (1) of the preceding Article also applyIf a customer property administrator or a customer property administrator representative accepts, or demands or promises to a accept, a bribe in connection with their duties, the person that commits a crime referred to in that paragraph outside Japanis subject to punishment by imprisonment for not more than three years or a fine of not more than one million yen.

A crime referred to If a customer property administrator or a customer property administrator representative is a corporation, and an officer or employee thereof who is engaged in paragraph (3)the duties of the preceding Article customer property administrator or customer property administrator representative accepts, or demands or promises to accept, a bribe in connection with those duties, the officer or employee is governed subject to punishment by the provisions imprisonment for not more than three years or a fine of Article 2 not more than one million yen. The same applies in the case where a customer property administrator or a customer property administrator representative is a corporation and an officer or employee thereof, in connection with the duties of the Penal Codecustomer property administrator or customer property administrator representative, causes the customer property administrator or customer property administrator representative to accept a bribe, or demands or promises the provision of a bribe.

In the cases referred to in the preceding two paragraphs, a bribe accepted by the offender or by a customer property administrator or customer property administrator representative that is a corporation is to be confiscated. If it is not possible to confiscate all or part of it, the value thereof is to be collected.

A person that provides, or offers or promises to provide, a bribe prescribed in paragraph (1) or (2) is subject to punishment by imprisonment for not more than three years or a fine of not more than one million yen.

The crimes referred to in Article 203, paragraph (1) and paragraphs (1) and (2) of the preceding Article also apply to a person that commits those crimes outside Japan.

The crimes referred to in Article 203, paragraph (3) and paragraph (4) of the preceding Article are governed by the provisions of Article 2 of the Penal Code.

A person that violates the provisions of Article 26-32, Article 57-35, Article 72 (including as applied mutatis mutandis pursuant to Article 79 or Article 79-14); Article 77-2, paragraph (7) or (8) (including as applied mutatis mutandis pursuant to Article 77-3, paragraph (4), Article 78-7, Article 78-8, paragraph (4), or Article 79-13), Article 79-47, Article 87-8, Article 156-8, Article 156-20-7, or Article 156-70 is subject to punishment by imprisonment for not more than one year or a fine of not more than 500 thousand yen.

If an officer of a financial instruments business operator under management (in the case of a financial instruments business operator under management that is a foreign corporation, including its domestic representative, and where the officer is a corporation, the person who is to perform its duties), or an accounting auditor (where the accounting auditor is a corporation, the partner who is to perform its duties), or an employee, or a person who was any of these, fails to make a report under the provisions of Article 57-34, paragraph (1), or makes a false report, or refuses, obstructs, or evades an inspection under the provisions of that paragraph, the person is subject to punishment by imprisonment for not more than one year or a fine of not more than 500,000 yen.

the person, in violation of Article 27-53, paragraphs (1) through (3), fails to publish information on specified cryptoassets, etc. under those provisions, or violates the provisions of Article 27-54, paragraph (2) with respect to the information on specified cryptoassets, etc.;

the person, in violation of Article 27-53, paragraph (1) or Article 27-54, paragraph (3), publishes information on specified cryptoassets, etc. under the provisions of Article 27-53, paragraph (1) that contains a false statement regarding a material particular;

the person, in violation of Article 27-53, paragraph (4) or Article 27-54, paragraph (3), publishes information on specified cryptoassets, etc. under the provisions of Article 27-53, paragraph (2) or (3) that contains a false statement regarding a material particular;

the person does not file a notification under the provisions of Article 27-55 or Article 27-64, or files a false notification;

the person does not file a notification under the provisions of Article 27-56, paragraph (2), or files a false notification;

the person fails to make a report or submit materials under the provisions of Article 27-58, paragraph (1), Article 27-59, paragraph (4), or Article 27-68, paragraph (1), or makes a false report or submits false materials;

the person refuses, obstructs, or evades an inspection under the provisions of Article 27-58, paragraph (1) or Article 27-68, paragraph (1);

the person publishes cryptoasset information under the provisions of Article 27-60, extraordinary cryptoasset information under the provisions of Article 27-61, or amended cryptoasset information, etc. relating to cryptoasset information, etc. pursuant to the provisions of Article 27-62 or an order under the provisions of Article 27-65, paragraph (1), any of which contains a false statement regarding a material particular;

the person fails to publish cryptoasset information under the provisions of Article 27-60 or extraordinary cryptoasset information under the provisions of Article 27-61, or violates the provisions of Article 27-63 with respect to the cryptoasset information or extraordinary cryptoasset information;

the person fails to publish amended cryptoasset information, etc. relating to cryptoasset information, etc. under an order under the provisions of Article 27-65, paragraph (1), or violates the provisions of Article 27-63 with respect to the amended cryptoasset information, etc.;

the person violates an order under Article 27-65, paragraph (2);

when the person enters a false statement into a written application or an attached document under the provisions of Article 30-3; Article 64, paragraph (3) or (4) (including as applied mutatis mutandis pursuant to Article 64-4, paragraph (3) (including as applied mutatis mutandis pursuant to Article 66-25) and Article 66-25); or Article 85-2, paragraph (1) or (2) and submits it;

when the person, in violation of Article 37-3, paragraph (1) , Article 37-4, or Article 37-437-5, fails to provide information or give notice under those provisions, or provides or gives notice of false information;

when the person, in violation of Article 37-5, paragraph (1), fails to deliver a written document, or delivers a written document that does not contain the particulars prescribed in that paragraph or a written document that contains a false statement, or, by the means prescribed in Article 34-2, paragraph (4) as applied mutatis mutandis pursuant to Article 37-5, paragraph (2), makes a provision that lacks those particulars or a provision of false particulars;

when the person violates the Cabinet Office Order under the provisions of Article 161, paragraph (1) (including as applied mutatis mutandis pursuant to paragraph (2) of that Article and Article 171-16) or paragraph (3) of that Article;

the person violates the provisions of Article 171-12;

when the person discontinues financial instruments obligation assumption service without obtaining fails to make a report or submit materials under the authorization referred to in Article 156-20-15provisions of Article 57-33, or makes a false report or submits false materials;

when the person suspends or discontinues all or part of dispute resolution services, etc. (meaning the dispute resolution services, etc. prescribed in Article 156-38, paragraph (11))financial instruments obligation assumption service without obtaining the authorization referred to in Article 156-60, paragraph (1); or156-20-15;

when the person suspends or discontinues all or part of trade repository business dispute resolution services, etc. (meaning the dispute resolution services, etc. prescribed in Article 156-38, paragraph (12)) without obtaining the authorization referred to in Article 156-82156-60, paragraph (1).; or

when the person suspends or discontinues all or part of trade repository business without obtaining the authorization referred to in Article 156-82, paragraph (1).

when the person fails to make a notification under Article 26-10, paragraph (1) or (3); Article 31, paragraph (1), (3) or (7); Article 32-3, paragraph (1) (including as applied mutatis mutandis pursuant to Article 32-4 and Article 57-26, paragraph (1)) or Article 32-3, paragraph (2); Article 33-6, paragraph (1) or (3); Article 35, paragraph (3) or (6); Article 35-2-2, paragraph (4) or (5); Article 50, paragraph (1); Article 57-2, paragraph (4) or (6); Article 57-14; Article 57-18, paragraph (1); Article 60-5 (including as applied mutatis mutandis pursuant to Article 60-14, paragraph (2)); Article 63, paragraph (8) (including as applied mutatis mutandis pursuant to Article 63-3, paragraph (2)); Article 63-2, paragraph (2); Article 63-2, paragraph (3) (including as applied mutatis mutandis pursuant to Article 63-3, paragraph (2)) or Article 63-2, paragraph (4); Article 63-9, paragraph (7) (including as applied mutatis mutandis pursuant to Article 63-11, paragraph (2)); Article 63-10, paragraph (2), Article 63-10, paragraph (3) (including as applied mutatis mutandis pursuant to Article 63-11, paragraph (2)), or Article 63-10, paragraph (4); Article 64-4 (, paragraph (1) (including as applied mutatis mutandis pursuant to Article 66-25); Article 66-5, paragraph (1) or (3); Article 66-19, paragraph (1); Article 66-31, paragraph (1) or (3); Article 66-54, paragraph (1) or (3); Article 66-60; Article 66-75, paragraph (1) or (3); Article 66-94, paragraph (6) or (7); Article 66-101; Article 79-27, paragraph (4); Article 106-3, paragraph (5) (including as applied mutatis mutandis pursuant to Article 106-10, paragraph (4) and Article 106-17, paragraph (4)); Article 156-5-5, paragraph (5); Article 156-55, paragraph (1); Article 156-56; Article 156-60, paragraph (2); Article 156-82, paragraph (2); Article 156-86, paragraph (4); or Article 156-88, or makes a false notification;

when the person violates the provisions of Article 31-3; Article 43-4, paragraph (1) or (2); Article 43-16, paragraph (1); Article 66-6; or Article 194;

the person violates an order under the provisions of Article 43-8, paragraph (1), Article 67-15, paragraph (1), Article 67-17, paragraph (1), Article 127, paragraph (1), or Article 129, paragraph (1);

the provisions of Article 200 (excluding item (xii)-311, item (xv)-2, item (xvii), item (xviii)-2, and item (xix)) or Article 201, item (i), item (ii), item (iv), item (vi), or items (ix) through (xi):a fine of not more than 100 million yen; and

the provisions of Article 198, paragraph (1), item (v); Article 198-6, item (viii), item (ix), item (xii), item (xiii), or item (xv); Article 200, item (xii)-311, item (xv)-2, item (xvii), item (xviii)-2, or item (xix); Article 201 (excluding item (i), item (ii), item (iv), item (vi), and items (ix) through (xi)); Articles 205204-2 through 205-2-2; Article 205-2-3, paragraph (1); or paragraph (1) of the preceding Article:the fine prescribed in the relevant Articles.

A director or executive officer of a financial instruments business operator, a domestic representative of a financial instruments business operator that is a foreign corporation, or a person equivalent to any of them, or an officer of an association (including a provisional board member), is subject to a civil fine of not more than one million yen in any of the following cases:

the person fails to hand over affairs to a customer property administrator appointed under the provisions of Article 57-30, paragraph (2); or

the person, in violation of Article 57-31, paragraph (3), refuses without a justifiable ground to become a customer property administrator.

A customer property administrator is subject to a civil fine of not more than one million yen in any of the following cases:

the person fails to hand over affairs to a director, executive officer, or liquidator of a financial instruments business operator under management, a domestic representative of a financial instruments business operator under management that is a foreign corporation, or a person equivalent to any of them, even though the disposition ordering administration has been rescinded under the provisions of Article 57-29, paragraph (1); or

the person violates an order under the provisions of Article 57-30, paragraph (3).

A person that, in violation of a disposition under Article 189, paragraph (1), fails to appear, fails to give a statement, or gives a false statement, or fails to make a report or submit materials, or makes a false report or submits false materials, is subject to a civil fine of not more than 500,000 yen.

In any of the following cases, the representative or officer of an issuer of securities, a specified non-financial information audit certification provider, a financial instruments business operator, etc., specified major shareholder of a financial instruments business operator, designated parent company, notifier of specially permitted services, notifier of specially permitted services for foreign investors, etc., financial instruments intermediary service provider, high-speed trader, or investment management-related services contractor, or cryptoasset management-related service provider; a financial instruments business operator that is an individual, individual who is a specified major shareholder of a financial instruments business operator, notifier of specially permitted services that is an individual, notifier of specially permitted services for foreign investors, etc. that is an individual, financial instruments intermediary service provider that is an individual, high-speed trader that is an individual, or investment management-related services contractor that is an individual, or cryptoasset management-related service provider that is an individual; the domestic representative of a specified non-financial information audit certification provider that is a foreign corporation, a financial instruments business operator that is a foreign corporation, person that has obtained permission under Article 59, authorized firm for on-exchange transactions, business operator authorized to conduct electronic over-the-counter derivatives transactions, etc., notifier of specially permitted services that is a foreign corporation, notifier of specially permitted services for foreign investors, etc. that is a foreign corporation, high-speed trader that is a foreign corporation, or investment management-related services contractor that is a foreign corporation, or cryptoasset management-related service provider that is a foreign corporation; the officer of a credit rating agency (including the representative or administrator of an organization without legal personality for which a representative or administrator has been designated); the domestic representative of a credit rating agency that is a foreign corporation (including an organization without legal personality for which a representative or administrator has been designated); the officer (including a provisional board member) or the former representative of a certified specified non-financial information audit certification business association prescribed in Article 26-29, paragraph (2), an authorized financial instruments firms association or the certified financial instruments business association prescribed in Article 78, paragraph (2); the officer (including a provisional board member or provisional inspector) or liquidator of an investor protection fund; the officer (including a provisional board member, provisional director, or provisional executive officer), former representative, or liquidator of a financial instruments exchange or the self-regulatory organization prescribed in Article 85, paragraph (1); the domestic representative or former domestic representative of a foreign financial instruments exchange; the representative or officer of a financial instruments clearing organization; the domestic representative of a foreign financial instruments clearing organization; the representative or officer of a securities finance company; the officer of the designated dispute resolution organization prescribed in Article 156-38, paragraph (1) (including the representative or administrator of an organization without legal personality for which a representative or administrator has been designated); the officer of a trade repository (including the representative or administrator of an organization without legal personality for which a representative or administrator has been designated); the officer of a specified financial index administrator (including the representative or administrator of an organization without legal personality for which a representative or administrator has been designated); or a specified financial index administrator that is an individual is sentenced to a civil fine of 300,000 yen or less:

the person violates the provisions of Article 4, paragraph (5) (including as applied mutatis mutandis pursuant to Article 23-8, paragraph (4)); Article 44-4 (, paragraph (1) (including as applied mutatis mutandis pursuant to Article 59-6) or paragraph (2); Article 79-26, paragraph (2); Article 79-73; Article 119, paragraph (1) or (4); or Article 161-2, paragraph (1);

the person violates an order under the provisions of Article 26-24, paragraph (1), Article 32-2, paragraph (2), Article 51, Article 51-2, Article 53, paragraph (1), Article 57-6, paragraph (1), Article 57-19, Article 57-21, paragraph (1) or (4), Article 60-8, paragraph (1) (including as applied mutatis mutandis pursuant to Article 60-14, paragraph (2); hereinafter the same applies in this item), Article 63-5, paragraph (1) (including as applied mutatis mutandis pursuant to Article 63-3, paragraph (2)), Article 63-13, paragraph (1) (including as applied mutatis mutandis pursuant to Article 63-11, paragraph (2)), Article 66-20, paragraph (1)66-19-2, Article 66-41, Article 66-62, Article 66-84, Article 66-102, Article 79-37, paragraph (5), Article 79-75, Article 156-16, Article 156-20-13, Article 156-33, paragraph (1), Article 156-81, or Article 156-90, paragraph (1) (if this is an order referred to in Article 26-24, paragraph (1), Article 57-6, paragraph (1), Article 60-8, paragraph (1), or Article 66-2060-8, paragraph (1), excluding a disposition for the suspension of business);

the person, in violation of Article 43-9, fails to make a public announcement;

a person that violates the provisions of Article 162, paragraph (1) (including as applied mutatis mutandis pursuant to paragraph (2) of that Article and Article 171-16);

a person that violates the provisions of Article 40-527-49, paragraph (1) or (3);

a person that, in violation of Article 27-49, paragraph (2) or (4), fails to provide information;

a person that violates the provisions of Article 40-5, paragraph (1);

a person that violates an order under the provisions of Article 26-37, paragraph (2), Article 60-4, paragraph (2) (including as applied mutatis mutandis pursuant to Article 60-14, paragraph (2)), Article 65, paragraph (2), Article 66-46, paragraph (2), Article 66-90, paragraph (2), or Article 66-9066-107, paragraph (2);

a person that fails to make a report or submit materials under the provisions of Article 62, paragraph (2) or Article 189, paragraph (1), or makes a false report or submits false materials;

A claim, etc. that has been confiscated with regard to the crime referred to in Article 197, paragraph (1), item (v) or (vi) or paragraph (2), Article 197-2, paragraph (1), item (xiii) or (xvi), or Article 200, item (xiv) must be disposed of by a public prosecutor.

If a judicial decision for confiscation of a claim that should be confiscated with regard to the crime referred to in Article 197, paragraph (1), item (v) or (vi) or paragraph (2), Article 197-2, paragraph (1), item (xiii) or (xvi), or Article 200, item (xiv) becomes final and binding, a public prosecutor must notify the debtor of the claim to that effect by sending an extract of the written judgment of the judicial decision for confiscation (or, if the written judgment is an electronic or magnetic record, a document or electronic or magnetic record that states or records part of the particulars recorded in that written judgment and for which it has been certified that its content is identical to the particulars recorded in that written judgment); provided, however, that notification by electronic or magnetic record may not be made if the person receiving it has an objection.

In the case of commissioning a related organization to make registration , etc. of transfer of right based on a judicial decision for confiscation of property for which transfer of right requires registration or recording (hereinafter referred to as "registration, etc." in this Article) with regard to the crime referred to in Article 197, paragraph (1), item (v) or (vi) or paragraph (2), Article 197-2, paragraph (1), item (xiii) or (xvi), or Article 200, item (xiv), if there is a registration , etc. related to restriction on a disposition that has ceased to be effective as a result of the confiscation or a registration , etc. related to acquisition of right that has been extinguished as a result of the confiscation, or if there is a registration , etc. related to a preservation order for confiscation or a collateral preservation order under the provisions of Chapter IV, Section 1 of the Act on Punishment of Organized Crimes and Control of Proceeds of Crime (Act No. 136 of 1999), a deletion of the registration, etc. must also be commissioned.

With regard to the details of compensation under the Criminal Compensation Act for execution of the confiscation of a claim, etc. to be confiscated with regard to the crime referred to in Article 197, paragraph (1), item (v) or (vi) or paragraph (2), Article 197-2, paragraph (1), item (xiii) or (xvi), or Article 200, item (xiv), the provisions of Article 4, paragraph (6) of that Act apply mutatis mutandis.

An official of the securities and Exchange Surveillance Commission (hereinafter referred to as the "Commission" in this Chapter) (hereinafter such an official is referred to as a "Commission official" in this Chapter) may, if this is necessary for investigating a criminal case (meaning a case relating to a crime referred to in Chapter VIII that is specified by Cabinet Order as a crime that is detrimental to the fairness of the purchase and sale or other transactions of securities or crypto-and other assets or of derivatives transactions, etc., or as any other crime that is necessary and appropriate to be made subject to investigation by Commission officials for the public interest or investor protection; hereinafter the same applies in this Chapter), request a suspect or witness (hereinafter referred to as a "suspect or witness in a criminal case" in this paragraph and paragraph (1) of the following Article) to appear, ask questions to a suspect or witness in a criminal case, inspect articles in the possession of or abandoned by a suspect or witness in a criminal case, or retain articles that a suspect or witness in a criminal case voluntarily submits or abandons.