Financial Instruments and Exchange Act

When a person specified in the following items (the person is referred to as a "person submitting disclosure documents, etc." in the following paragraph) has submitted, provided, or publicized documents or information specified in any of the items (the documents and information are referred to as the "fake disclosure documents, etc." in that paragraph) and there is a person that performed a specified involvement act (hereinafter referred to as "specified involved person" in this paragraph), the Prime Minister must, in accordance with the procedures prescribed in the following Section, order the specified involved person to pay to the national treasury an administrative monetary penalty in the amount specified by Cabinet Office Order as the amount equivalent to the amount of money or the value of other assets which have been paid or is payable as the fees, remuneration, or any other consideration for the specified involvement act:

issuer:a disclosure document for offerings (meaning a disclosure document for offerings prescribed in Article 172-2, paragraph (3)), an annual securities report, etc., or a semiannual securities or extraordinary report, etc. that contains a false statement about a material particular or omits a statement as to a material particular that is required to be stated, specified information on securities, etc. that contains a falsehood, etc., or information on the issuer, etc. that contains a falsehood, etc.; and

tender offeror prescribed in Article 27-3, paragraph (2) (including as applied mutatis mutandis pursuant to Article 27-22-2, paragraph (2)):tender offer notification, etc. which contains any fake statement on material particulars or lacks a statement on material particulars that are required to be stated.

The term "specified involvement act" as used in the preceding paragraph means an act which facilitates the submission, provision, or public announcement of fake disclosure documents, etc. by a person submitting disclosure documents, etc. which falls under any of the following items or an act which incites the submission, provision, or publicization of fake disclosure documents, etc. by a person submitting disclosure documents, etc.:

conducting a series of acts to hide or disguise all or part of the facts that should constitute the basis for accounting procedures necessary for the preparation of the fake disclosure documents, etc. and providing advice concerning the preparation of the fake disclosure documents, etc. by the person that prepares the fake disclosure documents, etc. based on the relevant hidden or disguised facts; and

with the knowledge that the act constitutes all or part of a series of acts to hide or disguise that are prescribed in the preceding item, perform all or part of a series of acts to hide or disguise (excluding an act for making an audit certification prescribed in Article 26-3, paragraph (1)).

If there is a person that has conducted a public offering or secondary distribution of specified cryptoassets requiring the disclosure of information on specified cryptoassets under the main clause of Article 27-39, paragraph (1), or a general solicitation involving specified cryptoassets acquired by a qualified institutional investor requiring the disclosure of information on specified cryptoassets under the main clause of paragraph (2) of that Article, without that information on specified cryptoassets having been disclosed (in the case of a person that has conducted a public offering or secondary distribution of specified cryptoassets (excluding an offer to provide newly issued specified cryptoassets for value or the solicitation of an offer to acquire them for value) or a person that has conducted a general solicitation involving specified cryptoassets acquired by a qualified institutional investor, limited to a person that has done these acts regarding specified cryptoassets that the person holds), the Prime Minister, in accordance with the procedures prescribed in the following Section, must order that person to pay to the national treasury an administrative monetary penalty in an amount equivalent to the amount specified in each of the following items according to the category of cases set forth in that item (the sum of the amounts specified in the items, if the case falls under all of the items).

in the case where specified cryptoassets have been caused to be acquired through that public offering or secondary distribution of specified cryptoassets (limited to an offer to provide newly issued specified cryptoassets for value or the solicitation of an offer to acquire them for value): 4.5 percent of the total value of the specified cryptoassets caused to be acquired;

in the case where specified cryptoassets held by that person have been sold through that public offering or secondary distribution of specified cryptoassets (excluding an offer to provide newly issued specified cryptoassets for value or the solicitation of an offer to acquire them for value) or general solicitation involving specified cryptoassets acquired by a qualified institutional investor: 4.5 percent of the total value of the specified cryptoassets sold.

If a specified cryptoasset issuer that has disclosed information on specified cryptoassets (including amended specified cryptoasset information, etc. relating to that information on specified cryptoassets; the same applies in the following paragraph) that contains false information about a material particular or lacks information about a material particular that is required to be disclosed causes specified cryptoassets to be acquired or sells specified cryptoassets through a public offering or secondary distribution of specified cryptoassets (limited to that relating to specified cryptoassets of that specified cryptoasset issuer) pertaining to the information on specified cryptoassets that contains false information about a material particular or lacks information about a material particular that is required to be disclosed, the Prime Minister, in accordance with the procedures prescribed in the following Section, must order that specified cryptoasset issuer to pay to the national treasury an administrative monetary penalty in an amount equivalent to 4.5 percent of the total value of the specified cryptoassets caused to be acquired or sold.

If an officer, etc. of a specified cryptoasset issuer that has disclosed information on specified cryptoassets that contains false information about a material particular or lacks information about a material particular that is required to be disclosed (meaning an officer, agent, employee or any other worker of that specified cryptoasset issuer; hereinafter the same applies in this paragraph), being a person that was involved in the disclosure of that information on specified cryptoassets with the knowledge that it contains false information or lacks information about a particular that is required to be disclosed, sells specified cryptoassets that the officer, etc. holds through a public offering or secondary distribution of specified cryptoassets pertaining to that information on specified cryptoassets, the Prime Minister, in accordance with the procedures prescribed in the following Section, must order that officer, etc. to pay to the national treasury an administrative monetary penalty in an amount equivalent to 4.5 percent of the total value of the specified cryptoassets sold.

If a financial instruments business operator, in violation of Article 27-39, paragraph (4), has handled a public offering or secondary distribution of specified cryptoassets without disclosing information on specified cryptoassets, the Prime Minister, in accordance with the procedures prescribed in the following Section, must order that financial instruments business operator to pay to the national treasury an administrative monetary penalty in an amount equivalent to the amount specified by Cabinet Office Order as the value of money or other property paid or to be paid as consideration for the business relating to the handling of the public offering or secondary distribution of specified cryptoassets pertaining to that information on specified cryptoassets.

The provisions of the preceding paragraph apply mutatis mutandis to the case where a financial instruments business operator that has disclosed, pursuant to Article 27-39, paragraph (4), information on specified cryptoassets (including amended specified cryptoasset information, etc. relating to that information on specified cryptoassets) that contains false information about a material particular or lacks information about a material particular that is required to be disclosed, with the knowledge that it contains false information about a material particular or lacks information about a material particular that is required to be disclosed, has handled a public offering or secondary distribution of specified cryptoassets pertaining to that information on specified cryptoassets.

If a specified cryptoasset issuer, in violation of Article 27-50, paragraph (1), does not disclose periodic information on specified cryptoassets, the Prime Minister, in accordance with the procedures prescribed in the following Section, must order that specified cryptoasset issuer to pay to the national treasury an administrative monetary penalty in an amount equivalent to the amount set forth in item (i) (or, if the amount set forth in item (ii) exceeds the amount set forth in item (i), the amount set forth in item (ii)); provided, however, that if the business year of the specified cryptoasset issuer is other than one year in length, the Prime Minister must order the payment to the national treasury of an administrative monetary penalty in an amount equivalent to the amount arrived at when the number of months in that business year is divided by 12 and the quotient is multiplied by that amount:

6 million yen;

the amount arrived at when the amount set forth in (a) is multiplied by the number set forth in (b):

the total amount of the transaction value of the specified cryptoassets pertaining to the periodic information on specified cryptoassets, calculated as provided by Cabinet Office Order (or, if there is no transaction value of the specified cryptoassets, the amount calculated as provided by Cabinet Order as being equivalent thereto);

six one-hundred-thousandths.

The provisions of the preceding paragraph apply mutatis mutandis to the case where there is a specified cryptoasset issuer that has disclosed periodic information on specified cryptoassets (including amended specified cryptoasset information, etc. relating to that periodic information on specified cryptoassets) that contains false information about a material particular or lacks information about a material particular that is required to be disclosed.

If there is a specified cryptoasset issuer that does not disclose, pursuant to Article 27-51, extraordinary information on specified cryptoassets (limited to that requiring the disclosure of the matters specified by Cabinet Office Order as having a material influence on investors' investment decisions), the Prime Minister, in accordance with the procedures prescribed in the following Section, must order that specified cryptoasset issuer to pay to the national treasury an administrative monetary penalty in an amount equivalent to one-half of the amount set forth in item (i) (or, if the amount set forth in item (ii) exceeds the amount set forth in item (i), the amount set forth in item (ii)). In this case, the proviso to paragraph (1) applies mutatis mutandis.

6 million yen;

the amount arrived at when the amount set forth in (a) is multiplied by the number set forth in (b):

the total amount of the transaction value of the specified cryptoassets pertaining to the extraordinary information on specified cryptoassets, calculated as provided by Cabinet Office Order (or, if there is no transaction value of the specified cryptoassets, the amount calculated as provided by Cabinet Order as being equivalent thereto);

six one-hundred-thousandths.

The provisions of the preceding paragraph apply mutatis mutandis to the case where there is a specified cryptoasset issuer that has disclosed extraordinary information on specified cryptoassets (including amended specified cryptoasset information, etc. relating to that extraordinary information on specified cryptoassets) that contains false information about a material particular or lacks information about a material particular that is required to be disclosed.

The number of months in the proviso to paragraph (1) (including as applied mutatis mutandis pursuant to paragraph (2) and the second sentence of paragraph (3) (including as applied mutatis mutandis pursuant to the preceding paragraph)) is to be calculated according to the calendar, and if a fraction of less than one month arises, it is to be counted as one month.