Financial Instruments and Exchange Act

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.

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.