Financial Instruments and Exchange Act

(NotificationRegistration of a Change to Registered Information)

a particular set forth in Article 64, paragraph (3), item (iii), (a) , (b), or (be) changes (excluding the case where a registration of a change pursuant to the provisions of the following paragraph has been obtained);

the person comes to fall under any of Article 29-4, paragraph (1), item (ii), (b) through (i) (if the person is performing cryptoasset-related duties, (b) through (i) of that item or (c) 1. through 3. of item (viii) of that paragraph); or

When a financial instruments business operator seeks to make a change (limited to one resulting from newly seeking to perform cryptoasset-related duties) in the particulars set forth in Article 64, paragraph (3), item (iii), (e), it must have that change registered by the Prime Minister pursuant to the provisions of Cabinet Office Order.

The provisions of Article 64, paragraphs (3) and (4) and Article 64-2 apply mutatis mutandis to the registration of a change referred to in the preceding paragraph. In this case, the phrase "the following particulars" in Article 64, paragraph (3) is deemed to be replaced with "the particulars subject to the change", and the phrase "any of the following items" in Article 64-2, paragraph (1) is deemed to be replaced with "item (i) (limited to the portion pertaining to Article 29-4, paragraph (1), item (viii), (c) 1. through 3.)".

the person comes to fall under any of Article 29-4, paragraph (1), item (ii), (a) through (i) (if the person is performing cryptoasset-related duties, (a) through (i) of that item or (c) 1. through 3. of item (viii) of that paragraph), or is discovered to have fallen under any of the items of Article 64-2, paragraph (1) at the time of registration;

If an association that does registration work pursuant to the provisions of paragraph (1) or (2) makes a registration under Article 64, paragraph (5), makes a change to a registration in connection with a notification under Article 64-4, paragraph (1), makes a registration of a change under paragraph (2) of that Article, reaches a disposition under Article 64-5, paragraph (1) (excluding the deletionrescission of a registration), or deletes a registration as under the preceding Article, it must notify the Prime Minister of this without delay, pursuant to the provisions of Cabinet Office Order.

If the sales representative of a financial instruments business operator, etc. which belongs to an association that does registration work pursuant to the provisions of paragraph (1) falls under any of the categories initems of Article 64-5, paragraph (1), items (i) through (iii) but the association does not take a measure prescribed in that paragraph, and the Prime Minister finds it to be necessary and appropriate in the public interest or for the protection of investors, the Prime Minister may order the association to take a measure prescribed in that paragraph.

A financial instruments business operator, etc. seeking to have a sales representative registered or to have a change registered must pay a registration fee to the State (if registering with an association pursuant to the provisions of paragraph (1) or (2) of the preceding Article, to the association) pursuant to the provisions of Cabinet Order.

A financial instruments business operator, etc. that objects to the inaction of an association that does the registration work under Article 64-7, paragraph (1) or (2) in connection with an application for registration under Article 64, paragraph (3), (including as applied mutatis mutandis pursuant to Article 64-4, paragraph (3)), that objects to such an association's refusal of a registration under Article 64-2, paragraph (1), (including as applied mutatis mutandis pursuant to Article 64-4, paragraph (3)), or that objects to the Article 64-5, paragraph (1) disposition of an association that does the registration work under Article 64-7, paragraph (1), may file a request for review with the Prime Minister. In this case, with regard to the application of the provisions of Article 25, paragraphs (2) and (3), Article 46, paragraphs (1) and (2), and Article 49, paragraph (3) of the Administrative AppealComplaint Review Act (Act No. 68 of 2014), the Prime Minister is deemed to be the higher administrative agency of the association.

If a trust company, a foreign trust company, or a person registered as referred to in Article 50-2, paragraph (1) of the Trust Business Act makes a purchase and sale, etc. of a beneficial interest in a trust in the course of its business pursuant to the provisions of the preceding paragraph, it is deemed to be a financial instruments business operator, and the provisions of Articles 34 through 34-5; Article 36-2, paragraphs (1) and (2) (but only if a person registered as referred to in Article 50-2, paragraph (1) of the Trust Business Act makes a purchase and sale, etc. of a beneficial interest in a trust in the course of its business); Article 36-3; Article 37 (excluding paragraph (1), item (ii)); Article 37-2; Article 37-3 (excluding paragraph (1), item (ii)); Article 37-4; Article 37-6; Article 38 (excluding item (vii)); Article 39 (excluding paragraphs (4) and (6)); Article 40; Article 40-4; Article 40-5; Article 45, items (i) and (ii); Articles 47 through 47-3; Article 51; Article 52, paragraphs (1) and (2); Article 56-2, paragraph (1); Article 190; and Article 194-5, paragraph (2), and the provisions of Chapters VIII and VIII-2 connected with these provisions apply. In this case, in Article 52, paragraph (1), the phrase "any of the following items" is deemed to be replaced with "item (viiviii) or (xxi)" and the phrase "rescind its Article 29 registration, rescind its Article 30, paragraph (1) authorization, or order the suspension of all or part of business during a fixed period of no longer than six months" is deemed to be replaced with "order the suspension of all or part of business during a fixed period of no longer than six months"; and in paragraph (2) of that Article, the phrase "is discovered to have fallen under the cases under any of (a) through (i) of item (ii) of that itemparagraph at the time of obtaining the registration referred to in Article 29, or comes to fall under the cases under any of item (viiviii) or items (ixx) through (xixii) of the preceding paragraph" is deemed to be replaced with "or comes to fall under the cases under item (viiviii) or (xxi) of the preceding paragraph".

Notwithstanding the provisions of Article 29, a person other than a bank, a cooperative financial institution, or a financial institution specified by Cabinet Order (but not a person engaged in type-I financial instruments business (meaning type-I financial instruments business as prescribed in Article 28, paragraph (1); hereinafter the same applies in this Chapter) or cryptoasset trading business (meaning cryptoasset trading business as prescribed in paragraph (5) of that Article; hereinafter the same applies in this Chapter) and not the officer or employee of a registered financial institution) may be registered by the Prime Minister and engage in financial instruments intermediary service.

the trade name or nametype of the financial instruments business operator (limited to one engaged in type-I financial instruments business or investment management(meaning the type of securities purchase and sale intermediary business , etc. (meaning investment managementthe business as prescribedset forth in Article 282, paragraph (4); 11), item (i); hereinafter the same applies in Article 66-14, item (i), (d))) or registered financial institution entrusting the applicant (hereinafter referred to as the "entrusting financial instruments business operator, etc." in this Chapter and Chapter IVthis Chapter) and intermediary services for purchase and sale, etc. of cryptoassets (meaning the business set forth in item (ii) of that paragraph; hereinafter the same applies in this Chapter));

if the person engagesparticulars specified in other business, (a) or (b) below, according to the typecategory of that business; andcases set forth in (a) or (b):

in the case of engaging in securities purchase and sale intermediary business, etc., the trade name or name of the financial instruments business operator (limited to one engaged in type-I financial instruments business or investment management business (meaning investment management business as prescribed in Article 28, paragraph (4); the same applies in Article 66-14, item (i), (d))) or registered financial institution entrusting the applicant;

in the case of engaging in intermediary services for purchase and sale, etc. of cryptoassets, the trade name of the financial instruments business operator entrusting the applicant (limited to one engaged in cryptoasset trading business);

other particulars specified by Cabinet Office Order.in the case of engaging in intermediary services for purchase and sale, etc. of cryptoassets, the name of the cryptoassets handled;

if the person engages in other business, the type of that business; and

other particulars specified by Cabinet Office Order.

the applicanta person for registration has an which any of the entrusting financial instruments business operatoroperators, etc. that is not a member of an associationof the applicant for registration (meaning an authorizedthe financial instruments firms associationbusiness operator or a certified registered financial institution prescribed in Article 66-2, paragraph (1), item (v), (a) or the financial instruments firms association asbusiness operator prescribed in Article 78, paragraph (2)).(b) of that item; hereinafter the same applies in this Chapter and Chapter IV) is not a member of the body specified in (a) or (b) below, according to the category of cases set forth in (a) or (b):

if the entrusting financial instruments business operator, etc. is the financial instruments business operator or registered financial institution prescribed in Article 66-2, paragraph (1), item (v), (a), an association (meaning an authorized financial instruments firms association or a certified financial instruments business association as prescribed in Article 78, paragraph (2));

if the entrusting financial instruments business operator, etc. is the financial instruments business operator prescribed in Article 66-2, paragraph (1), item (v), (b), the certified financial instruments business association prescribed in Article 78, paragraph (2);

in the case where the applicant for registration seeks to engage in intermediary services for purchase and sale, etc. of cryptoassets, a person that falls under any of the following:

a person falling under Article 29-4, paragraph (1), item (viii), (a) or (b);

in the case of an individual, a person falling under Article 29-4, paragraph (1), item (viii), (c) 1. or 2.;

in the case of a corporation, a person that has a person falling under any of Article 29-4, paragraph (1), item (viii), (c) 1. through 3. among its officers.

(NotificationRegistration of a Change)

If any particular set forth in the items of Article 66-2, paragraph (1) changes, the financial instruments intermediary service provider must notify the Prime Minister of thisA financial instruments intermediary service provider must notify the Prime Minister of this in advance if it falls under the case set forth in item (i), or within two weeks from thethat day of if it falls under the changecase set forth in item (ii).

it seeks to change a particular set forth in Article 66-2, paragraph (1), item (v), (b) or item (vi) (excluding cases specified by Cabinet Office Order as cases where there is little risk of failing to protect investors or of impeding the proper and reliable performance of financial instruments intermediary service);

a particular set forth in the items of Article 66-2, paragraph (1) (excluding item (iv)) changes (excluding the case where a notification has been made pursuant to the provisions of this paragraph (limited to the portion pertaining to the preceding item)).

If A financial instruments intermediary service provider must, pursuant to the provisions of Cabinet Office Order, notify the Prime Minister of this in advance if it seeks to change those of the business outline or business methods that a financial instruments intermediary service providerit has stated in a document set forth in Article 66-2, paragraph (2), item (ii) change, the financial instruments intermediary service provider must notify that relate to intermediary services for purchase and sale, etc. of cryptoassets and are specified by Cabinet Office Order as particularly necessary in the Prime Minister of this public interest or for investor protection, or without delay, pursuant to the provisions of Cabinet Office Order if a change occurs in any of the others.

If a financial instruments intermediary service provider seeks to change the particular set forth in Article 66-2, paragraph (1), item (iv), it must have that change registered by the Prime Minister pursuant to the provisions of Cabinet Office Order.

The provisions of the preceding two Articles apply mutatis mutandis to the registration of a change referred to in the preceding paragraph. In this case, in Article 66-3, paragraph (1), the phrase "the following particulars" is deemed to be replaced with "the particulars subject to the change"; in the preceding Article, the phrase "the following items" is deemed to be replaced with "the following items (excluding item (i) and item (ii))"; and any other necessary technical replacement of terms is specified by Cabinet Order.

A financial instruments intermediary service provider must post a sign in the format specified by Cabinet Office Order in a place that is accessible to the public at each of its business offices or other offices; provided, however, that this does not apply in a case specified by Cabinet Office Order as one in which no impediment to the protection of investors arises.

If a financial instruments intermediary service provider seeks to perform an act set forthprescribed in any of the items of Article 2, paragraph (11) (hereinafter referred to as the "intermediation for financial instruments" in this Chapter), it must clearly indicate the following particulars to customers in advance:

if it provides investment advisory business (meaning investment advisory business set forth in Article 28, paragraph (67); the same applies in (cd)), using information about a purchase and sale or other transaction of securities that a customer makes based on the advice provided through its investment advisory business in order to solicit a customer other than the customer in question; or if it engages in investment management business, using information about a purchase and sale or other transaction of securities made as an investment in connection with its investment management business, in order to solicit a customer other than the customer in question;

A financial instruments intermediary service provider must not conduct any of the acts specified in Article 2, paragraph (11), item (i) , (a) or (iib) in connection with securities for professional investors, etc. with a general investor (meaning a person other than a professional investor, etc., a non-resident, the issuer of the securities for professional investors, etc., or any other person specified by Cabinet Office Order; hereinafter the same applies in this Article) as the other party; provided, however, that this does not apply in a case in which disclosure has been made with regard to the securities for professional investors, etc., a case in which the financial instruments intermediary service provider intermediates, a purchase for an entrusting financial instruments business operator, etc. which is not based on a solicitation of general investors, or any other case specified by Cabinet Office Order as having little likelihood of resulting in insufficient investor protection.

(Application Mutatis Mutandis of Provisions on Financial Instruments Business Operators , etc. in Relation to the Prohibition Establishment, etc. of Compensation for Losses)an Operational Control System

The provisions of Article 35-3, Article 38-2, Article 39, paragraphs (1), (3), (4), and (7), Article 40, and Article 43-6 apply mutatis mutandis to a financial instruments intermediary service provider, and Article 39, paragraphs (2), (5), and (6) apply mutatis mutandis to the customer of a financial instruments intermediary service provider, and Article 43-13 applies mutatis mutandis to a financial instruments intermediary service provider that conducts intermediary services for purchase and sale, etc. of cryptoassets. In this case, in Article 39, paragraph (3), the phrase "if the financial instruments business operator, etc. receives" is deemed to be replaced with "if the entrusting financial instruments business operator, etc. of the financial instruments intermediary service provider receives", and any other necessary technical replacement of terms is specified by Cabinet Order.

Each business year, pursuant to the provisions of Cabinet Office Order, a financial instruments intermediary service provider must prepare documents stating those of the particulars stated in the business report referred to in the preceding paragraph which are specified by Cabinet Office Order as particulars that are found to be necessary in terms of investor protection, and must , pursuant to the provisions of Cabinet Office Order, keep those documents at all of the business offices and offices at which it conducts financial instruments intermediary service and make them available for public inspection, or disclose them using the internet or through other means, pursuant to the provisions of Cabinet Office Order.

For each business year of an entrusting financial instruments business operator, etc. and , a financial instruments intermediary service provider must, pursuant to the provisions of Cabinet Office Order, a financial instruments intermediary service provider must keep the explanatory documents that the entrusting financial instruments business operator, etc. prepares pursuant to the provisions of Article 46-4 or Article 47-3 (if the entrusting financial instruments business operator, etc., is a registered financial institution, the documents that it prepares pursuant to the provisions of Article 21, paragraphs (1) and (2) of the Banking Act (Act No. 59 of 1981) or other provisions specified by Cabinet Order) at all of the business offices and offices at which it conducts financial instruments intermediary service, and must make them available for public inspection, or disclose them using the internet or through other means, pursuant to the provisions of Cabinet Office Order.

If a financial instruments intermediary service provider comes to fall under any of the items of the preceding paragraph, if it no longer has an entrusting financial instruments business operator, etc., or if it becomes registered as referred to infollowing items applies, the Article 29 (but only if66 registration of the registered financial instruments business operator engages in type-Irelevant financial instruments business), its Article 66 registrationintermediary service provider ceases to be effective.:

a financial instruments intermediary service provider comes to fall under any of the items of the preceding paragraph (excluding item (vi));

it no longer has any entrusting financial instruments business operator, etc.;

a financial instruments intermediary service provider (limited to one that conducts every business set forth in the items of Article 2, paragraph (11)) comes to fall under any of the following:

it comes to fall under item (vi) of the preceding paragraph and also becomes registered as referred to in Article 29 (but only if the financial instruments business operator that has obtained the registration engages in cryptoasset trading business) or has a change registered pursuant to the provisions of Article 31, paragraph (4) (limited to registration of a change to the effect that a person other than one engaged in cryptoasset trading business is to engage in cryptoasset trading business);

it becomes registered as referred to in Article 29 (but only if the financial instruments business operator that has obtained the registration engages in type-I financial instruments business and cryptoasset trading business) or has a change registered pursuant to the provisions of Article 31, paragraph (4) (limited to registration of a change to the effect that a person other than one engaged in type-I financial instruments business and cryptoasset trading business is to engage in type-I financial instruments business and cryptoasset trading business);

it comes to fall under item (vi) of the preceding paragraph and also no longer has an entrusting financial instruments business operator, etc. relating to intermediary services for purchase and sale, etc. of cryptoassets;

it becomes registered as referred to in Article 29 (but only if the financial instruments business operator that has obtained the registration engages in type-I financial instruments business) or has a change registered pursuant to the provisions of Article 31, paragraph (4) (limited to registration of a change to the effect that a person other than one engaged in type-I financial instruments business is to engage in type-I financial instruments business), and also no longer has an entrusting financial instruments business operator, etc. relating to intermediary services for purchase and sale, etc. of cryptoassets;

it becomes registered as referred to in Article 29 (but only if the financial instruments business operator that has obtained the registration engages in cryptoasset trading business) or has a change registered pursuant to the provisions of Article 31, paragraph (4) (limited to registration of a change to the effect that a person other than one engaged in cryptoasset trading business is to engage in cryptoasset trading business), and also no longer has an entrusting financial instruments business operator, etc. relating to securities purchase and sale intermediary business, etc.;

a financial instruments intermediary service provider (limited to one that conducts only securities purchase and sale intermediary business, etc.) comes to fall under item (vi) of the preceding paragraph, or becomes registered as referred to in Article 29 (but only if the financial instruments business operator that has obtained the registration engages in type-I financial instruments business) or has a change registered pursuant to the provisions of Article 31, paragraph (4) (limited to registration of a change to the effect that a person other than one engaged in type-I financial instruments business is to engage in type-I financial instruments business);

a financial instruments intermediary service provider (limited to one that conducts only intermediary services for purchase and sale, etc. of cryptoassets) becomes registered as referred to in Article 29 (but only if the financial instruments business operator that has obtained the registration engages in cryptoasset trading business) or has a change registered pursuant to the provisions of Article 31, paragraph (4) (limited to registration of a change to the effect that a person other than one engaged in cryptoasset trading business is to engage in cryptoasset trading business).

If a financial instruments intermediary service provider that conducts every business set forth in the items of Article 2, paragraph (11) comes to fall under any of the cases set forth in the following items (excluding the case where it falls under all of the cases set forth in the following items), it is deemed to have received a registration of a change pursuant to the provisions of Article 66-5, paragraph (4) with the content specified in the relevant item:

in the case where it falls under any of the following, the content to the effect that it does not conduct securities purchase and sale intermediary business, etc. as regards the particulars set forth in Article 66-2, paragraph (1), item (iv):

it comes to fall under paragraph (1), item (vi), or becomes registered as referred to in Article 29 (but only if the financial instruments business operator that has obtained the registration engages in type-I financial instruments business) or has a change registered pursuant to the provisions of Article 31, paragraph (4) (limited to registration of a change to the effect that a person other than one engaged in type-I financial instruments business is to engage in type-I financial instruments business);

it no longer has an entrusting financial instruments business operator, etc. relating to securities purchase and sale intermediary business, etc.;

in the case where it falls under any of the following, the content to the effect that it does not conduct intermediary services for purchase and sale, etc. of cryptoassets as regards the particulars set forth in Article 66-2, paragraph (1), item (iv):

it becomes registered as referred to in Article 29 (but only if the financial instruments business operator that has obtained the registration engages in cryptoasset trading business) or has a change registered pursuant to the provisions of Article 31, paragraph (4) (limited to registration of a change to the effect that a person other than one engaged in cryptoasset trading business is to engage in cryptoasset trading business);

it no longer has an entrusting financial instruments business operator, etc. relating to intermediary services for purchase and sale, etc. of cryptoassets.

If the Prime Minister finds it to be necessary and appropriate in the public interest or for the protection of investors as concerns the operations of a financial instruments intermediary service provider, the Prime Minister may, to the extent necessary, order the financial instruments intermediary service provider to take measures that are necessary for improving its business operations, such as a change of business methods.

If a financial instruments intermediary service provider falls under any of the following items, the Prime Minister may rescind its Article 66 registration, or order the suspension of all or part of the business during a fixed period of no longer than six months, order a change of business methods, or issue orders with respect to matters that are otherwise necessary from a supervisory perspective:

the financial instruments intermediary service provider comes to fall under any of the categories in the items of Article 66-4 (excluding item (ii), (b) and item (vi), (c));

If the officer of a financial instruments intermediary service provider comes to fall under any of the categories in Article 29-4, paragraph (1), item (ii), (a) through (i) (in the case of an officer of a financial instruments intermediary service provider that conducts intermediary services for purchase and sale, etc. of cryptoassets, (a) through (i) of that item or (c) 1. through 3. of item (viii) of that paragraph), or engages in an act that falls under item (iii) of the preceding paragraph, the Prime Minister may order the financial instruments intermediary service provider to dismiss that officer.

If the Prime Minister is unable to ascertain the location of the business offices or offices of a financial instruments intermediary service provider or is unable to ascertain the whereabouts of the financial instruments intermediary service provider (if it is a corporation, the whereabouts of the officer representing the corporation), the Prime Minister, pursuant to the provisions of Cabinet Office Order, may issue public notice of that fact and rescind the registration of the financial instruments intermediary service provider if no filing is made by the financial instruments intermediary service provider even after 30 days past the day of the public notice.

The provisions of Chapter III of the Administrative Procedure Act do not apply to a disposition under the provisions of the preceding paragraph.

If an Article 66 registration loses its validity pursuant to the provisions of Article 66-19, paragraph (2) or if the Prime Minister rescinds an Article 66 registration pursuant to the provisions of paragraph (1) or (3) of the preceding Article, the Prime Minister must delete that registration.

When the Prime Minister finds it to be necessary and appropriate in the public interest or for the protection of investors, the Prime Minister may order a financial instruments intermediary service provider or, a person that conducts transactions with a the financial instruments intermediary service provider, or a person that the financial instruments intermediary service provider has entrusted with its business (including a person that has received entrustment from the person (including entrustment at two or more degrees of separation from the original entrustment); hereinafter the same applies in this Article), to submit reports or materials that should serve as a reference with regard to financial instruments intermediation operations of the financial instruments intermediary service provider, or may have the relevant officials inspect the state of the business, or documents and other articles, of the financial instruments intermediation operations intermediary service provider or a person that the financial instruments intermediary service provider has entrusted with its business (in the case of a person that the financial instruments intermediary service provider or inspect has entrusted with its documents or other articlesbusiness, limited to an inspection that is necessary with regard to the financial instruments intermediation operations of the financial instruments intermediary service provider).

The provisions of Article 57, paragraphs (1) and (3) apply mutatis mutandis to the registration referred to in Article 66 and the registration of a change referred to in Article 66-5, paragraph (4), and the provisions of Article 57, paragraphs (2) and (3) and Article 65-6 apply mutatis mutandis to a financial instruments intermediary service provider. In such a case, the necessary technical replacement of terms is specified by Cabinet Order.

Chapter III-6 Cryptoasset Management-related Service Providers

Section 1 General Provisions

A person that conducts cryptoasset management-related services must notify the Prime Minister of the following particulars in advance, pursuant to the provisions of Cabinet Office Order:

its trade name, name, or personal name;

particulars specified by Cabinet Office Order as particulars relating to its financial basis;

if it is a corporation, the personal names or names of its officers;

the name and location of its principal business office or office (in the case of a foreign corporation or an individual who has an address in a foreign country, its principal business office or office and its principal business office or office in Japan);

the name and location of the business office or office at which it conducts cryptoasset management-related services;

if the person engages in other business, the type of that business; and

other particulars specified by Cabinet Office Order.

The following documents must accompany the notification under the preceding paragraph:

a written pledge that the person does not fall under any of the items of paragraph (5);

a document stating the particulars specified by Cabinet Office Order as the content and methods of the business of cryptoasset management-related services;

if the person is a corporation, its articles of incorporation and a certificate of registered information of the corporation (including documents equivalent to them);

other documents specified by Cabinet Office Order.

When the document set forth in item (iii) of the preceding paragraph is attached, if the articles of incorporation are made in the form of an electronic or magnetic record, an electronic or magnetic record (limited to one specified by Cabinet Office Order) may be attached in lieu of the document.

The Prime Minister must make those of the particulars set forth in the items of paragraph (1) that pertain to a cryptoasset management-related service provider and are specified by Cabinet Office Order available to the public.

A person falling under any of the following items must not conduct cryptoasset management-related services:

a person falling under any of Article 29-4, paragraph (1), item (i), (a) through (c);

a person that does not have a business office or office in Japan;

in the case of a corporation, a person falling under any of the following:

a person that has, among its officers, a person falling under any of the following:

a person specified by Cabinet Office Order as being unable to properly perform business related to cryptoasset management-related services due to a mental or physical disorder;

a person falling under any of Article 29-4, paragraph (1), item (ii), (b) through (i);

a person falling under any of Article 29-4, paragraph (1), item (viii), (a) through (c);

a foreign corporation that has not designated a domestic representative or a domestic agent;

a person that has, among its officers or employees specified by Cabinet Order, a member of an organized crime group prescribed in Article 2, item (vi) of the Act on Prevention of Unjust Acts by Organized Crime Group Members or a person for whom five years have not elapsed since the day on which the person ceased to be a member of an organized crime group prescribed in that item (referred to as a "member of an organized crime group, etc." in item (iv), (d));

in the case of an individual, a person falling under any of the following:

a person falling under any of Article 29-4, paragraph (1), item (ii), (b) through (h) or (i) (excluding the part pertaining to the provisions of laws prescribed in item (i), (c) of that paragraph) or (a) 1. of the preceding item;

a person falling under any of Article 29-4, paragraph (1), item (viii), (c) 1. through 3.;

an individual who has an address in a foreign country and has not designated a domestic agent;

a member of an organized crime group, etc., or a person that has a member of an organized crime group, etc. among its employees specified by Cabinet Order.

If any particular set forth in the items of paragraph (1) changes, a cryptoasset management-related service provider must notify the Prime Minister of this within two weeks from that day.

If the business outline or business methods that a cryptoasset management-related service provider has stated in a document set forth in paragraph (2), item (ii) change, the cryptoasset management-related service provider must notify the Prime Minister of this without delay, pursuant to the provisions of Cabinet Office Order.

Section 2 Business

A cryptoasset management-related service provider and its officers and employees must perform its business sincerely and fairly for the financial instruments business operator that receives provision of cryptoasset management-related services.

A cryptoasset management-related service provider must perform its business for a financial instruments business operator that receives provision of cryptoasset management-related services with the due care of a prudent manager.

A cryptoasset management-related service provider must, pursuant to the provisions of Cabinet Office Order, establish an operational control system in order to properly perform the cryptoasset management-related services that it conducts.

In addition to what is provided for in the preceding paragraph, a cryptoasset management-related service provider must, pursuant to the provisions of Cabinet Office Order, take the measures necessary for preventing the leak, loss, or damage of information pertaining to the cryptoasset management-related services that it conducts, and for other secure management of that information.

A cryptoasset management-related service provider must not allow another person to conduct cryptoasset management-related services using its name.

A cryptoasset management-related service provider must, pursuant to the provisions of Cabinet Office Order, prepare records pertaining to cryptoasset management-related services and archive them.

Section 3 Supervision

Each business year, pursuant to the provisions of Cabinet Office Order, a cryptoasset management-related service provider must prepare a business report and submit it to the Prime Minister within three months after the end of the business year.

When a cryptoasset management-related service provider has come to fall under any of the following items, the person specified in each item must notify the Prime Minister to that effect within 30 days from that date.

if an individual who is a cryptoasset management-related service provider dies:the heir;

if the cryptoasset management-related services are discontinued:the juridical person or individual;

if a juridical person that is a cryptoasset management-related service provider ceases to exist by a merger:the person who was an officer representing that juridical person;

if a juridical person that is a cryptoasset management-related service provider dissolves as a result of an order to commence bankruptcy proceedings:the bankruptcy trustee;

if a juridical person that is a cryptoasset management-related service provider dissolves for reasons other than a merger or an order to commence bankruptcy proceedings:the liquidator;

if a juridical person that is a cryptoasset management-related service provider has had the whole of a business (limited to a business pertaining to cryptoasset management-related services; the same applies in the following item) succeeded to by a company split:that juridical person; or

if the whole of the business is transferred:the juridical person or individual.

If the Prime Minister finds it to be necessary and appropriate in the public interest or for the protection of investors concerning the operation of the business or the state of the assets of a cryptoasset management-related service provider, the Prime Minister may, to the extent necessary, order the cryptoasset management-related service provider to take measures necessary for improving its business operations or the state of its assets, such as changing its method of business.

If a cryptoasset management-related service provider falls under any of the following items, the Prime Minister may order it to discontinue its cryptoasset management-related services, or may specify a period not exceeding six months and order the suspension of the whole or part of its cryptoasset management-related services.

if it has come to fall under any of the items of Article 66-94, paragraph (5) (excluding item (iii), (a) and (b) (limited to the portion pertaining to Article 29-4, paragraph (1), item (viii), (c)));

if it violates a law or regulation or a disposition by a government agency which is based on a law or regulation, in connection with its cryptoasset management-related services; or

if it has committed an unlawful or grossly inappropriate act in connection with its cryptoasset management-related services and the circumstances are particularly grave.

The Prime Minister may order a cryptoasset management-related service provider to dismiss an officer of it (for a foreign corporation, limited to an officer stationed at a business office or office in Japan or its representative in Japan; hereinafter the same applies in this paragraph) if the officer has come to fall under Article 66-94, paragraph (5), item (iii), (a) or (b) (limited to the portion pertaining to Article 29-4, paragraph (1), item (viii), (c); hereinafter the same applies in this paragraph), if it is found that, at the time the notification under Article 66-94, paragraph (1) was made, the officer already fell under item (iii), (a) or (b) of paragraph (5) of that Article, or if the officer has come to fall under item (ii) or (iii) of the preceding paragraph.

When the Prime Minister has ordered the discontinuation of cryptoasset management-related services or ordered the suspension of the whole or part of the business pursuant to paragraph (1) of the preceding Article, the Prime Minister must give public notice to that effect pursuant to the provisions of Cabinet Office Order.

When the Prime Minister finds it to be necessary and appropriate in the public interest or for the protection of investors, the Prime Minister may order a cryptoasset management-related service provider, a person that conducts transactions with it, or a person that has been entrusted with business by that cryptoasset management-related service provider (including a person that has received entrustment from that person (including entrustment at two or more degrees of separation from the original entrustment); hereinafter the same applies in this Article) to submit reports or materials that should serve as a reference with regard to the business of that cryptoasset management-related service provider, or may have the relevant officials inspect the state of the business or the records and any other articles of that cryptoasset management-related service provider or of a person that has been entrusted with business by that cryptoasset management-related service provider (for a person that has been entrusted with business by that cryptoasset management-related service provider, limited to inspection that is necessary in connection with the business of that cryptoasset management-related service provider).

Irrespective of the category of proceeding for hearing statements of opinion under Article 13, paragraph (1) of the Administrative Procedure Act, when seeking to take a disposition under Article 66-102 or Article 66-103, paragraph (1), the Prime Minister must conduct a hearing.

When the Prime Minister has decided to take a disposition under Article 66-102 or Article 66-103, the Prime Minister must notify the cryptoasset management-related service provider to that effect in writing.

Section 4 Miscellaneous Provisions

If there is a vacant position for the representative in Japan of a cryptoasset management-related service provider (limited to a foreign corporation; hereinafter the same applies in this Article) and the Prime Minister finds it necessary, the Prime Minister may appoint a person to temporarily perform that representative's duties (referred to as an "acting representative" in the following paragraph). In this case, the cryptoasset management-related service provider must register this at the location of its principal business office or office in Japan.

If the Prime Minister appoints an acting representative pursuant to the provisions of the preceding paragraph, the Prime Minister may order the cryptoasset management-related service provider to pay the acting representative a reasonable amount of remuneration.

With regard to the application of the provisions of Article 66-100 in the case where a cryptoasset management-related service provider is a foreign corporation or an individual who has an address in a foreign country, the phrase "within three months" in that Article is deemed to be replaced with "within the period specified by Cabinet Order", and beyond that, any necessary technical replacement of terms in applying the provisions of this Act in the case where a cryptoasset management-related service provider is a foreign corporation or an individual who has an address in a foreign country, and other particulars necessary for applying the provisions of this Act to that foreign corporation or individual, are specified by Cabinet Order.

The procedures for implementing the provisions of Article 66-94 through the preceding Article and other necessary particulars are specified by Cabinet Office Order.

The Prime Minister, in supervising a cryptoasset management-related service provider, must give due consideration to respecting the voluntary efforts of the cryptoasset management-related service provider to run its business.

The provisions of paragraph (1) do not apply if an authorized association has obtained a designation under Article 156-39, paragraph (1) and the filing referred to in paragraph (1) is for a complaint in the category of dispute resolution services (meaning a category of dispute resolution services as prescribed in Article 156-38, paragraph (1213); the same applies in paragraph (9) of the following Article (including as applied mutatis mutandis pursuant to Article 79-13) to which that designation pertains).

its aim is to ensure fair and smooth purchase and sales and other transactions of securities and cryptoassets and to ensure fair and smooth derivatives transactions, etc., as well as contributing to the sound development of the financial instruments business and to the protection of investors;

establishing the necessary rules and providing other services for ensuring propriety in its members' and financial instruments intermediary service providers' solicitation in respect of purchase and sales and other transactions of securities and cryptoassets;