Financial Instruments and Exchange Act

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.

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.

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.