Financial Instruments and Exchange Act

When there is a person (hereinafter in this paragraph referred to as a "violator") who, in violation of Article 171-10, paragraph (1), has made the communication referred to in that paragraph or has committed an act of recommending the conduct of the purchase and sale, etc. referred to in that paragraph (hereinafter in this paragraph referred to as a "violation"), only in the case where a person who received that communication or was recommended to conduct that purchase and sale, etc. due to that violation (hereinafter in this paragraph and paragraph (4) referred to as an "information recipient, etc.") has conducted purchase and sale, etc. of subject specified cryptoassets, etc. relating to that violation before the disclosure under Article 171-7, paragraph (1) comes to be made of the material fact about specified cryptoassets, etc. prescribed in that paragraph relating to that violation (excluding the case that falls under any of the items of paragraph (6) of that Article), the Prime Minister must, in accordance with the procedures prescribed in the following Section, order the violator 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 those items:

when a violation has been committed in relation to the business relating to the acts set forth in Article 2, paragraph (8), item (ii) or (iii), the acts set forth in item (iv) of that paragraph (excluding over-the-counter derivatives transactions), the acts set forth in item (x) of that paragraph (excluding the purchase and sale of securities), the acts set forth in item (xix) of that paragraph, or acts specified by Cabinet Order as being equivalent to them, concerning subject specified cryptoassets, etc. (including business specified by Cabinet Office Order as incidental to them; hereinafter referred to as "intermediation-related business" in this paragraph through paragraph (3)) (excluding the case set forth in the following item): the amount obtained by multiplying by three, the amount specified by Cabinet Office Order as an amount equivalent to the consideration for intermediation-related business in the month that includes the day of the violation (if there are two or more such months, the last of those months) to be paid by the information recipient, etc. to the violator;

when a violation has been committed in relation to the business relating to the acts set forth in Article 2, paragraph (8), item (ix) or (xxii) concerning the relevant subject specified cryptoassets, etc. (hereinafter referred to as "business of public offering, etc." in this item, item (ii) of the following paragraph, item (ii) of paragraph (3), and Article 185-7, paragraphs (20) and (21)): the sum of the amounts set forth in (a) and (b):

the amount obtained by multiplying by three, the amount specified by Cabinet Office Order as an amount equivalent to the consideration for intermediation-related business in the month that includes the day of the violation (if there are two or more such months, the last of those months) to be paid by the information recipient, etc. to the violator; and

the amount obtained by multiplying by one-half, the amount specified by Cabinet Office Order as an amount equivalent to the consideration for the business of public offering, etc. and the business relating to the acts set forth in Article 2, paragraph (8), item (vi) or (xx) that is performed together with the business of public offering, etc.

in cases other than those set forth in the preceding two items: the amount obtained by multiplying by one-half the amount equivalent to the profit gained by the information recipient, etc. through the purchase and sale, etc. made by it as a result of the violation.

When a person has, in violation of Article 171-10, paragraph (2), performed the act of providing information set forth in that paragraph or recommending the purchase and sale, etc. set forth in that paragraph (hereinafter the act is referred to as a "violation" and the person is referred to as the "violator" in this paragraph), the Prime Minister must, in accordance with the procedures prescribed in the following Section, order the violator to pay to the national treasury an administrative monetary penalty in an amount equivalent to the amount prescribed in each of the following items in accordance with the category of the cases set forth in those items only when the person that has received the information by the violation or the person that has been recommended to make the purchase and sale, etc. (hereinafter referred to as the "information recipient, etc." in this paragraph and paragraph (5)) makes a purchase and sale, etc. of subject cryptoassets, etc. related to the violation before the disclosure set forth in Article 171-8, paragraph (1) is made with regard to the material fact concerning the handling, etc. of cryptoassets prescribed in that paragraph related to the violation (excluding cases that fall under the cases set forth in the items of paragraph (5) of that Article):

a violation is committed in relation to intermediation-related business concerning subject cryptoassets, etc. (excluding the case set forth in the following item): the amount obtained by multiplying by three the amount specified by Cabinet Office Order as an amount equivalent to the consideration for intermediation-related business in the month that includes the day on which the violation was committed (if there are two or more such months, the last of those months) to be paid by the information recipient, etc. to the violator;

a violation is committed in relation to the business of public offering, etc. concerning those subject cryptoassets, etc.: the sum of the amounts set forth in (a) and (b) below:

the amount obtained by multiplying by three the amount specified by Cabinet Office Order as an amount equivalent to the consideration for intermediation-related business in the month that includes the day on which the violation was committed (if there are two or more such months, the last of those months) to be paid by the information recipient, etc. to the violator;

the amount obtained by multiplying by one-half the amount specified by Cabinet Office Order as an amount equivalent to the consideration for that business of public offering, etc. and the business relating to the acts set forth in Article 2, paragraph (8), item (vi) or (xx) that is performed together with that business of public offering, etc.; and

in cases other than those set forth in the preceding two items: the amount obtained by multiplying by one-half the amount equivalent to the profit gained by the information recipient, etc. through the purchase and sale, etc. made by it as a result of the violation.

When a person has, in violation of Article 171-10, paragraph (3), performed the act of providing information set forth in that paragraph or recommending the sale, etc. of cryptoassets, etc. or the purchase, etc. of cryptoassets, etc. set forth in that paragraph (hereinafter the act is referred to as a "violation" and the person is referred to as the "violator" in this paragraph), the Prime Minister must, in accordance with the procedures prescribed in the following Section, order the violator to pay to the national treasury an administrative monetary penalty in an amount equivalent to the amount prescribed in each of the following items in accordance with the category of the cases set forth in those items only when the person that has received the information by the violation or the person that has been recommended to make the sale, etc. of cryptoassets, etc. or the purchase, etc. of cryptoassets, etc. (hereinafter referred to as the "information recipient, etc." in this paragraph and paragraph (6)) makes a sale, etc. of cryptoassets, etc. or a purchase, etc. of cryptoassets, etc. related to the violation before the disclosure set forth in Article 171-9, paragraph (1) is made with regard to the fact concerning large-volume trading related to the violation (excluding cases that fall under the cases set forth in the items of paragraph (5) of that Article):

a violation is committed in relation to intermediation-related business concerning cryptoassets, etc. (excluding the case set forth in the following item): the amount obtained by multiplying by three the amount specified by Cabinet Office Order as an amount equivalent to the consideration for intermediation-related business in the month that includes the day on which the violation was committed (if there are two or more such months, the last of those months) to be paid by the information recipient, etc. to the violator;

a violation is committed in relation to the business of public offering, etc. concerning those cryptoassets, etc.: the sum of the amounts set forth in (a) and (b) below:

the amount obtained by multiplying by three the amount specified by Cabinet Office Order as an amount equivalent to the consideration for intermediation-related business in the month that includes the day on which the violation was committed (if there are two or more such months, the last of those months) to be paid by the information recipient, etc. to the violator;

the amount obtained by multiplying by one-half the amount specified by Cabinet Office Order as an amount equivalent to the consideration for that business of public offering, etc. and the business relating to the acts set forth in Article 2, paragraph (8), item (vi) or (xx) that is performed together with that business of public offering, etc.; and

in cases other than those set forth in the preceding two items: the amount obtained by multiplying by one-half the amount equivalent to the profit gained by the information recipient, etc. through the sale, etc. of cryptoassets, etc. or the purchase, etc. of cryptoassets, etc. made by it as a result of the violation.

The "amount equivalent to the profit" in paragraph (1), item (iii) means the amount prescribed in each of the following items in accordance with the category of the cases set forth in those items (or, if the case falls under all of the following items, the sum of the amounts prescribed in those items).

the information recipient, etc. makes a sale, etc. of subject specified cryptoassets, etc.: the amount obtained by deducting the amount set forth in (b) below from the amount set forth in (a) below:

for that sale, etc. of subject specified cryptoassets, etc., the amount obtained by multiplying the price at which that sale, etc. of subject specified cryptoassets, etc. was made by its quantity;

for that sale, etc. of subject specified cryptoassets, etc., the amount obtained by multiplying the lowest price during the two weeks after the disclosure set forth in paragraph (1) by the quantity of that sale, etc. of subject specified cryptoassets, etc.;

the information recipient, etc. makes a purchase, etc. of subject specified cryptoassets, etc.: the amount obtained by deducting the amount set forth in (b) below from the amount set forth in (a) below:

for that purchase, etc. of subject specified cryptoassets, etc., the amount obtained by multiplying the highest price during the two weeks after the disclosure set forth in paragraph (1) by the quantity of that purchase, etc. of subject specified cryptoassets, etc.;

for that purchase, etc. of subject specified cryptoassets, etc., the amount obtained by multiplying the price at which that purchase, etc. of subject specified cryptoassets, etc. was made by its quantity;

The "amount equivalent to the profit" in paragraph (2), item (iii) means the amount prescribed in each of the following items in accordance with the category of the cases set forth in those items (or, if the case falls under all of the following items, the sum of the amounts prescribed in those items).

the information recipient, etc. makes a sale, etc. of subject cryptoassets, etc.: the amount obtained by deducting the amount set forth in (b) below from the amount set forth in (a) below:

for that sale, etc. of subject cryptoassets, etc., the amount obtained by multiplying the price at which that sale, etc. of subject cryptoassets, etc. was made by its quantity;

for that sale, etc. of subject cryptoassets, etc., the amount obtained by multiplying the lowest price during the two weeks after the disclosure set forth in paragraph (2) by the quantity of that sale, etc. of subject cryptoassets, etc.;

the information recipient, etc. makes a purchase, etc. of subject cryptoassets, etc.: the amount obtained by deducting the amount set forth in (b) below from the amount set forth in (a) below:

for that purchase, etc. of subject cryptoassets, etc., the amount obtained by multiplying the highest price during the two weeks after the disclosure set forth in paragraph (2) by the quantity of that purchase, etc. of subject cryptoassets, etc.;

for that purchase, etc. of subject cryptoassets, etc., the amount obtained by multiplying the price at which that purchase, etc. of subject cryptoassets, etc. was made by its quantity.

The "amount equivalent to the profit" in paragraph (3), item (iii) means the amount prescribed in each of the following items in accordance with the category of the cases set forth in those items (or, if the case falls under all of the following items, the sum of the amounts prescribed in those items).

the information recipient, etc. makes a sale, etc. of cryptoassets, etc.: the amount obtained by deducting the amount set forth in (b) below from the amount set forth in (a) below:

for that sale, etc. of cryptoassets, etc., the amount obtained by multiplying the price at which that sale, etc. of cryptoassets, etc. was made by its quantity;

for that sale, etc. of cryptoassets, etc., the amount obtained by multiplying the lowest price during the two weeks after the disclosure set forth in paragraph (3) by the quantity of that sale, etc. of cryptoassets, etc.;

the information recipient, etc. makes a purchase, etc. of cryptoassets, etc.: the amount obtained by deducting the amount set forth in (b) below from the amount set forth in (a) below:

for that purchase, etc. of cryptoassets, etc., the amount obtained by multiplying the highest price during the two weeks after the disclosure set forth in paragraph (3) by the quantity of that purchase, etc. of cryptoassets, etc.;

for that purchase, etc. of cryptoassets, etc., the amount obtained by multiplying the price at which that purchase, etc. of cryptoassets, etc. was made by its quantity.

The "sale, etc. of subject specified cryptoassets, etc." in paragraph (4), item (i) means the sale of subject specified cryptoassets, etc., a transaction set forth in Article 2, paragraph (21), item (ii) (limited to a transaction in which the relevant person is the party to pay money if the actual figure exceeds the agreed figure), a transaction set forth in item (iii) of that paragraph (limited to a transaction in which the relevant person is the party to grant an option), or any other transaction specified by Cabinet Order.

The "lowest price during the two weeks after the disclosure set forth in paragraph (1)" in paragraph (4), item (i), (b) means the lowest price among the lowest prices prescribed in Article 43-9, Article 67-19 or Article 130 for each day in the period from the day on which the disclosure set forth in paragraph (1) is made to the day on which two weeks have elapsed counting from the day following that day (if there is no such price, the amount specified by Cabinet Office Order as being equivalent to it, and for the day on which that disclosure is made, the amount specified by Cabinet Office Order).

The "purchase, etc. of subject specified cryptoassets, etc." in paragraph (4), item (ii) means the purchase of subject specified cryptoassets, etc., a transaction set forth in Article 2, paragraph (21), item (ii) (limited to a transaction in which the relevant person is the party to receive money if the actual figure exceeds the agreed figure), a transaction set forth in item (iii) of that paragraph (limited to a transaction in which the relevant person is the party to acquire an option), or any other transaction specified by Cabinet Office Order.

The "highest price during the two weeks after the disclosure set forth in paragraph (1)" in paragraph (4), item (ii), (a) means the highest price among the highest prices prescribed in Article 43-9, Article 67-19 or Article 130 for each day in the period from the day on which the disclosure set forth in paragraph (1) is made to the day on which two weeks have elapsed counting from the day following that day (if there is no such price, the amount specified by Cabinet Office Order as being equivalent to it, and for the day on which that disclosure is made, the amount specified by Cabinet Office Order).

The "sale, etc. of subject cryptoassets, etc." in paragraph (5), item (i) means the sale of subject cryptoassets, etc., a transaction set forth in Article 2, paragraph (21), item (ii) (limited to a transaction in which the relevant person is the party to pay money if the actual figure exceeds the agreed figure), a transaction set forth in item (iii) of that paragraph (limited to a transaction in which the relevant person is the party to grant an option), or any other transaction specified by Cabinet Order.

The "lowest price during the two weeks after the disclosure set forth in paragraph (2)" in paragraph (5), item (i), (b) means the lowest price among the lowest prices prescribed in Article 43-9, Article 67-19 or Article 130 for each day in the period from the day on which the disclosure set forth in paragraph (2) is made to the day on which two weeks have elapsed counting from the day following that day (if there is no such price, the amount specified by Cabinet Office Order as being equivalent to it, and for the day on which that disclosure is made, the amount specified by Cabinet Office Order).

The "purchase, etc. of subject cryptoassets, etc." in paragraph (5), item (ii) means the purchase of subject cryptoassets, etc., a transaction set forth in Article 2, paragraph (21), item (ii) (limited to a transaction in which the relevant person is the party to receive money if the actual figure exceeds the agreed figure), a transaction set forth in item (iii) of that paragraph (limited to a transaction in which the relevant person is the party to acquire an option), or any other transaction specified by Cabinet Order.

The "highest price during the two weeks after the disclosure set forth in paragraph (2)" in paragraph (5), item (ii), (a) means the highest price among the highest prices prescribed in Article 43-9, Article 67-19 or Article 130 for each day in the period from the day on which the disclosure set forth in paragraph (2) is made to the day on which two weeks have elapsed counting from the day following that day (if there is no such price, the amount specified by Cabinet Office Order as being equivalent to it, and for the day on which that disclosure is made, the amount specified by Cabinet Office Order).

The "sale, etc. of cryptoassets, etc." in paragraph (6), item (i) means the sale of cryptoassets, etc., a transaction set forth in Article 2, paragraph (21), item (ii) (limited to a transaction in which the relevant person is the party to pay money if the actual figure exceeds the agreed figure), a transaction set forth in item (iii) of that paragraph (limited to a transaction in which the relevant person is the party to grant an option), or any other transaction specified by Cabinet Order.

The "lowest price during the two weeks after the disclosure set forth in paragraph (3)" in paragraph (6), item (i), (b) means the lowest price among the lowest prices prescribed in Article 43-9, Article 67-19 or Article 130 for each day in the period from the day on which the disclosure set forth in paragraph (3) is made to the day on which two weeks have elapsed counting from the day following that day (if there is no such price, the amount specified by Cabinet Office Order as being equivalent to it, and for the day on which that disclosure is made, the amount specified by Cabinet Office Order).

The "purchase, etc. of cryptoassets, etc." in paragraph (6), item (ii) means the purchase of cryptoassets, etc., a transaction set forth in Article 2, paragraph (21), item (ii) (limited to a transaction in which the relevant person is the party to receive money if the actual figure exceeds the agreed figure), a transaction set forth in item (iii) of that paragraph (limited to a transaction in which the relevant person is the party to acquire an option), or any other transaction specified by Cabinet Office Order.

The "highest price during the two weeks after the disclosure set forth in paragraph (3)" in paragraph (6), item (ii), (a) means the highest price among the highest prices prescribed in Article 43-9, Article 67-19 or Article 130 for each day in the period from the day on which the disclosure set forth in paragraph (3) is made to the day on which two weeks have elapsed counting from the day following that day (if there is no such price, the amount specified by Cabinet Office Order as being equivalent to it, and for the day on which that disclosure is made, the amount specified by Cabinet Office Order).

The provisions of paragraph (1) apply mutatis mutandis to the case in which an officer, etc. specified in Article 166, paragraph (1), item (i) of a specified cryptoasset issuer has conducted a specified act of providing information, etc. (meaning an act of providing information set forth in Article 171-10, paragraph (1) or recommending the purchase and sale, etc. set forth in that paragraph for the purpose prescribed in that paragraph) as the business of the specified cryptoasset issuer. In this case, the term "the violator" in paragraph (1) is deemed to be replaced with "the specified cryptoasset issuer."

The provisions of paragraph (2) apply mutatis mutandis to the case in which an officer, etc. specified in Article 166, paragraph (1), item (i) of a financial instruments business operator has conducted a specified act of providing information, etc. (meaning an act of providing information set forth in Article 171-10, paragraph (2) or recommending the purchase and sale, etc. set forth in that paragraph for the purpose prescribed in that paragraph) as the business of the financial instruments business operator. In this case, the term "the violator" in paragraph (2) is deemed to be replaced with "the financial instruments business operator."

The provisions of paragraph (3) apply mutatis mutandis to the case in which an officer, etc. specified in Article 166, paragraph (1), item (i) of a large-volume trader (meaning the large-volume trader prescribed in Article 171-9, paragraph (1), item (i); the same applies hereafter in this paragraph) has conducted a specified act of providing information, etc. (meaning an act of providing information set forth in Article 171-10, paragraph (3) or recommending the sale, etc. of cryptoassets, etc. or the purchase, etc. of cryptoassets, etc. set forth in that paragraph for the purpose prescribed in that paragraph) as the business of the large-volume trader. In this case, the term "the violator" in paragraph (3) is deemed to be replaced with "the large-volume trader."

Beyond what is prescribed in paragraphs (4) through (18), when the sale, etc. of subject specified cryptoassets, etc. or the purchase, etc. of subject specified cryptoassets, etc. prescribed in paragraph (4), the sale, etc. of subject cryptoassets, etc. or the purchase, etc. of subject cryptoassets, etc. prescribed in paragraph (5), and the sale, etc. of cryptoassets, etc. or the purchase, etc. of cryptoassets, etc. prescribed in paragraph (6) fall under the transaction set forth in Article 2, paragraph (21), item (ii), the price and volume and any other necessary particulars relevant to the calculation of an administrative monetary penalty set forth in paragraph (1) (including as applied mutatis mutandis pursuant to paragraph (19)), paragraph (2) (including as applied mutatis mutandis pursuant to paragraph (20)) and paragraph (3) (including as applied mutatis mutandis pursuant to the preceding paragraph) are specified by Cabinet Order.