Payment Services Act

• An issuer must not refund prepaid payment instruments to their holders, except where a Cabinet Office Order allows it because the amount is small or the refund does not threaten the sound running of the business. It must refund the remaining balance when it stops issuing all or some of its instruments (unless the business passes to a successor), when its registration as a third-party issuer is revoked, or in other cases a Cabinet Office Order sets. It then gives public notice and tells holders, who have a period of at least 60 days to claim; holders who do not claim within it are left out of the refund.(Art. 20(1), Art. 20(2), Art. 20(5)) (the provisions it rests on)
• Funds transfer services (資金移動業) — funds transfer transactions (為替取引) carried on as a business by someone other than a bank — come in three types (種別): a provider's registration names each type it runs, and adding one needs a change registration. Type II (第二種資金移動業) handles only transfers up to a small amount a Cabinet Order sets, and Type III (第三種資金移動業) only transfers up to a particularly small amount a Cabinet Order sets; a Type III provider must not owe any one user more than an amount a Cabinet Order sets. Type I (第一種資金移動業) is any other funds transfer business: it needs the Prime Minister's approval of a business plan, and the provider must not take on obligations for a transfer whose amount, date or other details a Cabinet Office Order lists are not fixed, nor hold them longer than the period that Order sets.(Art. 2(2), Art. 36-2(1), Art. 36-2(2), Art. 36-2(3), Art. 38(1)(vii), Art. 41(1), Art. 40-2(1), Art. 51-2(1), Art. 51-2(2), Art. 51-3(1)) (the provisions it rests on)
• For each type of business it runs, a funds transfer provider must deposit security (履行保証金) at the official depository nearest its head office (for a foreign provider, its main office in Japan) of at least what it owes users on transfers not yet completed plus the cost of the procedure for paying users from the security, or, where that total is at or below an amount a Cabinet Order sets for small providers, that amount. The figure is taken each business day for Type I, and as the highest in each period of up to a week the provider sets for Types II and III, and must be deposited within a week at most. The provider may leave all or part of it undeposited while a guarantee, trust, debt-assumption, user-guarantee or payment-trust contract it has notified to the Prime Minister is in force; under these contracts money is paid into the depository only if the Prime Minister orders it, and the debt-assumption, user-guarantee and payment-trust contracts pay users directly only once bankruptcy or similar proceedings are applied for against the provider.(Art. 43(1), Art. 43(2), Art. 44(1), Art. 45(1), Art. 45(2), Art. 45-3(1), Art. 45-3(2), Art. 45-4(1), Art. 45-4(2), Art. 45-5(1), Art. 45-5(2), Art. 46(1)) (the provisions it rests on)
• Users of a funds transfer provider have a right to be paid, before its other creditors, from the security deposited for the type of business they used; where someone applies to exercise that right, or bankruptcy or similar proceedings are applied for against the provider, the Prime Minister must, if users' protection requires it, give notice to file claims within at least 60 days and take the other steps needed. A Type III provider that notifies the Prime Minister may instead keep a set share of what it owes in bank deposits whose account name shows they are held for this purpose, or in another way a Cabinet Office Order sets, audited regularly by a certified public accountant or audit firm, and need not deposit security for that share. Its users' right over the security then covers only their claim less that share.(Art. 59(1), Art. 59(2), Art. 45-2(1), Art. 45-2(2)) (the provisions it rests on)
• An electronic payment instruments service provider (電子決済手段等取引業者) must keep users' electronic payment instruments (電子決済手段) separate from its own, and have that audited regularly by a certified public accountant or audit firm. It must not, under any name, take deposits of users' money or other property other than electronic payment instruments in connection with its electronic payment instruments services, or have a closely related person a Cabinet Order names take them, except where a Cabinet Office Order allows. As a rule it must have a contract with the issuer of each instrument it handles (or, for adjusting balances on behalf of a funds transfer provider, with that provider) that sets, among other things, how they share liability for losses users suffer, and must do business in line with it.(Art. 62-13(1), Art. 62-14(1), Art. 62-14(2), Art. 62-15(1)) (the provisions it rests on)
• A cryptoasset exchange service provider (暗号資産交換業者) must keep users' money separate from its own and entrust it to a trust company or trust bank, and keep users' cryptoassets (暗号資産) separate from its own, holding all but those a Cabinet Office Order exempts for users' convenience in a way that Order sets as unlikely to put users at risk; for the exempted ones it must hold the same kind and amount of its own cryptoassets (履行保証暗号資産), kept separately in the same way. A user whose cryptoassets it manages has a right to be paid from the users' separately managed cryptoassets and that reserve before its other creditors. Its advertisements must state, among other things, that cryptoassets are not Japanese or foreign currency, and it must not make false or misleading statements or encourage buying and selling cryptoassets solely for profit rather than to pay with them.This is the rule until the change takes effect, 22 July 2027 at the latest.(Art. 63-11(1), Art. 63-11(2), Art. 63-11-2(1), Art. 63-19-2(1), Art. 63-9-2(1), Art. 63-9-3(1)) (the provisions it rests on)
• On a day a Cabinet Order sets, no later than 22 July 2027, the amending Act (Act No. 64 of 2026) takes cryptoasset exchange out of this Act and brings it under the Financial Instruments and Exchange Act, which a separate Act governs. A company then registered under this Act as a cryptoasset exchange service provider may go on with that business without registering under Article 29 of that Act for six months from that day, and, while an application it made within those six months is pending, until two years from that day, being treated meanwhile as a financial instruments business operator (one already registered as such follows a parallel rule). It must notify the Prime Minister within two weeks of that day, or the permission ends when the two weeks are up, and the permission ends sooner if its application is refused or it is ordered to stop that business.This is the rule from a day still to be set, 22 July 2027 at the latest.(Art. 1(1), Suppl. Prov. Art. 1(1), Suppl. Prov. Art. 5(1), Suppl. Prov. Art. 8(1), Suppl. Prov. Art. 8(2), Suppl. Prov. Art. 8(3), Suppl. Prov. Art. 9(1), Suppl. Prov. Art. 9(2), Suppl. Prov. Art. 10(1), Suppl. Prov. Art. 10(2)) (the provisions it rests on)

• 12 August 2026

  The text on this site

  Act Partially Amending the Financial Instruments and Exchange Act and the Payment Services Act

  金融商品取引法及び資金決済に関する法律の一部を改正する法律

  Act No. 64 of 2026The text after this amendment, on e-Gov

• 23 July 2026

  Act Partially Amending the Financial Instruments and Exchange Act and the Payment Services Act

  金融商品取引法及び資金決済に関する法律の一部を改正する法律

  Act No. 64 of 2026The text after this amendment, on e-Gov

• 1 June 2026

  Act Partially Amending the Payment Services Act

  資金決済に関する法律の一部を改正する法律

  Act No. 66 of 2025The text after this amendment, on e-Gov

• 13 June 2025

  Act Partially Amending the Payment Services Act

  資金決済に関する法律の一部を改正する法律

  Act No. 66 of 2025The text after this amendment, on e-Gov

• 1 June 2025

  Act on the Arrangement of Related Acts upon the Enforcement of the Act Partially Amending the Penal Code, etc. (extract)

  刑法等の一部を改正する法律の施行に伴う関係法律の整理等に関する法律　抄

  Act No. 68 of 2022The text after this amendment, on e-Gov

• 1 April 2025

  Act Partially Amending the Financial Instruments and Exchange Act, etc.

  金融商品取引法等の一部を改正する法律

  Act No. 79 of 2023The text after this amendment, on e-Gov

• 1 April 2024

  Act Partially Amending the Financial Instruments and Exchange Act, etc.

  金融商品取引法等の一部を改正する法律

  Act No. 79 of 2023The text after this amendment, on e-Gov

• 29 November 2023

  Act Partially Amending the Financial Instruments and Exchange Act, etc.

  金融商品取引法等の一部を改正する法律

  Act No. 79 of 2023The text after this amendment, on e-Gov

• 1 June 2023

  Act Partially Amending the Act on Special Measures Concerning the Freezing, etc. of Assets of International Terrorists Implemented by Japan in Light of United Nations Security Council Resolution 1267, etc., and Other Acts, to Address the Movement of Illicit International Funds, etc.

  国際的な不正資金等の移動等に対処するための国際連合安全保障理事会決議第千二百六十七号等を踏まえ我が国が実施する国際テロリストの財産の凍結等に関する特別措置法等の一部を改正する法律

  Act No. 97 of 2022The text after this amendment, on e-Gov

• 1 June 2023

  Act Partially Amending the Payment Services Act, etc. to Establish a Stable and Efficient Funds Settlement System

  安定的かつ効率的な資金決済制度の構築を図るための資金決済に関する法律等の一部を改正する法律

  Act No. 61 of 2022The text after this amendment, on e-Gov

All 22 amendments already in force

• Banks and other deposit-taking institutions that meet requirements a Cabinet Order sets, and others it names, need not deposit security (発行保証金) for the prepaid payment instruments they issue.(Art. 35(1)) (the provisions it rests on)
• An issuer whose prepaid payment instruments can be used only with itself (自家型) need not notify the Prime Minister until its unused balance on a base date first exceeds the standard amount, and need not file base-date reports while its balance has fallen back to that amount or below. Any issuer, of either kind, may take back all or part of its security, as a Cabinet Order provides, when its unused balance on the base date is at or below the standard amount.(Art. 5(1), Art. 23(3), Art. 18(1)(i)) (the provisions it rests on)
• A prepaid issuer may, by filing a notice with the Prime Minister, use four base dates a year — 31 March, 30 June, 30 September and 31 December — instead of two, and may give this up only after a period a Cabinet Order sets.(Art. 29-2(1), Art. 29-2(3)) (the provisions it rests on)
• A bank or funds transfer provider that issues an electronic payment instrument may deal in and manage that instrument without registering as an electronic payment instruments service provider, by filing the documents the Act requires with the Prime Minister, unless it has had a registration, permission or licence under this Act, or a similar one under a corresponding foreign law, revoked, or been ordered to stop such a business, within the past five years. It is then treated as a registered provider for most of this Act's rules.This is the rule until the change takes effect, 22 July 2027 at the latest.(Art. 62-8(1), Art. 62-8(2), Art. 62-8(3), Art. 62-6(1)(viii), Art. 62-6(1)(ix)) (the provisions it rests on)
• On a day a Cabinet Order sets, no later than 22 July 2027, a bank or funds transfer provider that issues an electronic payment instrument may still deal in and manage that instrument without registering, by filing the documents the Act requires with the Prime Minister, but the five-year bar widens: besides revocations under this Act or a corresponding foreign law and orders to stop such a business, it counts the revocation of a registration under the Financial Instruments and Exchange Act, which a separate Act governs, that covers cryptoasset dealing, custody or intermediation. The revocation, before that day, of a registration under this Act as a cryptoasset exchange service provider or as an intermediary for electronic payment instruments and cryptoassets counts too. It is then treated as a registered provider for most of this Act's rules.This is the rule from a day still to be set, 22 July 2027 at the latest.(Art. 62-8(1), Art. 62-8(2), Art. 62-8(3), Art. 62-6(1)(viii), Art. 62-6(1)(ix), Suppl. Prov. Art. 1(1), Suppl. Prov. Art. 26(1)) (the provisions it rests on)
• A trust company a Cabinet Order designates that issues trust beneficiary rights meeting this Act's conditions (特定信託受益権) may carry on that funds transfer business by filing a notice with the Prime Minister instead of registering, unless it has had a registration, permission or licence revoked, or been ordered to stop such a business, within the past five years. When a holder asks it to repay the trust principal, it must do so without delay by cancelling part of the trust contract, except in cases a Cabinet Office Order sets.(Art. 2(9), Art. 2(30), Art. 2(31), Art. 36-2(4), Art. 37-2(1), Art. 37-2(3), Art. 37-2(4), Art. 40(1)(vii), Art. 40(1)(viii)) (the provisions it rests on)

• The Prime Minister delegates the Prime Minister's powers under this Act, apart from those a Cabinet Order keeps back, to the Commissioner of the Financial Services Agency (金融庁長官), who may pass some of them on to the directors of Local Finance Bureaus (財務局長) and Local Finance Branch Bureaus (財務支局長) as a Cabinet Order provides; funds transfer analysis businesses answer to the competent minister (主務大臣), who is the Prime Minister, joined by the Minister of Finance for analysis concerning payments under the Foreign Exchange and Foreign Trade Act. The Prime Minister keeps a list of issuers whose prepaid payment instruments are usable only with themselves, and registers of third-party issuers, funds transfer providers and electronic payment instruments service providers, all open for public inspection.(Art. 104(1), Art. 104(2), Art. 63-41(1), Art. 6(1), Art. 9(3), Art. 39(3), Art. 62-5(3)) (the provisions it rests on)
• Where needed for the business to be run properly, the Prime Minister may order a prepaid issuer, funds transfer provider or electronic payment instruments service provider (and, where particularly needed, its contractors, who may refuse for good reason) to report or hand over materials, send officials to question it and inspect its offices and books, and order it to improve its operations or finances. If it breaks this Act or an order, disposition or approval condition under it, was registered by fraud, comes to fall under a ground for refusing registration, runs Type I funds transfers outside its approved plan, or (for a prepaid issuer) faces a likely claim on its security that calls for limiting harm to users, the Prime Minister may suspend all or part of its business for up to six months or, for a registered business, revoke its registration. A registered business whose office or representative cannot be found may lose its registration, without the hearing procedures of the Administrative Procedure Act (行政手続法), if it does not come forward within 30 days of public notice; officials inspecting must carry identification and show it on request, and the power to inspect is not a power to investigate crime.(Art. 24(1), Art. 24(2), Art. 24(3), Art. 25(1), Art. 26(1), Art. 27(1), Art. 27(2), Art. 27(3), Art. 54(1), Art. 54(2), Art. 55(1), Art. 56(1), Art. 56(2), Art. 56(3), Art. 62-20(1), Art. 62-20(2), Art. 62-21(1), Art. 62-22(1), Art. 62-22(2), Art. 62-22(3), Art. 102(1), Art. 102(2)) (the provisions it rests on)
• A funds transfer provider or electronic payment instruments service provider that means to stop all or part of its business (and, for the latter, to transfer it, merge it away, dissolve or split it off) must give public notice at least 30 days ahead and post it at all its offices, and then, unless the business passes to a successor, promptly complete what it owes users; an electronic payment instruments service provider must also promptly return users' property or transfer it to them. When the Prime Minister revokes its registration, it must likewise promptly complete those obligations, except in cases a Cabinet Office Order sets, and it is treated as still registered for those purposes.(Art. 61(2), Art. 61(3), Art. 61(5), Art. 62(1), Art. 62-25(2), Art. 62-25(3), Art. 62-25(5), Art. 62-26(1)) (the provisions it rests on)
• Funds transfer providers and electronic payment instruments service providers must contract with a designated dispute resolution organization (指定紛争解決機関) for their kind of business where one exists, and otherwise arrange for complaints to be handled and disputes settled out of court; prepaid issuers must take the steps needed to deal with users' complaints properly and promptly. A certified association of payment service providers (認定資金決済事業者協会) that receives a user's complaint about a member must advise the user, look into it, and ask the member to deal with it promptly.(Art. 21-3(1), Art. 51-4(1), Art. 62-16(1), Art. 91(1)) (the provisions it rests on)
• Issuing third-party prepaid payment instruments without registration, carrying on electronic payment instruments services without registration, obtaining a registration under this Act by fraud, or letting another business operate under one's name is punishable by imprisonment (拘禁刑) of up to three years, a fine of up to 3 million yen, or both.(Art. 107(1)(i), Art. 107(1)(ii), Art. 107(1)(iii), Art. 107(1)(vii), Art. 107(1)(viii), Art. 107(1)(xi)) (the provisions it rests on)
• Running Type I funds transfer services without an approved business plan, breaking an order suspending a funds transfer or electronic payment instruments business, or failing to keep users' electronic payment instruments separate is punishable by imprisonment of up to two years, a fine of up to 3 million yen, or both. A funds transfer provider that fails to deposit its security faces up to one year, a fine of up to 3 million yen, or both; a prepaid issuer that fails to deposit its security faces up to six months, a fine of up to 500,000 yen, or both. Failing to report or hand over materials the Prime Minister orders, reporting falsely, refusing to answer or answering falsely an inspecting official, or refusing or obstructing an inspection is punishable by up to one year, a fine of up to 3 million yen, or both, for a funds transfer or electronic payment instruments service provider, and by up to six months, a fine of up to 500,000 yen, or both, for a prepaid issuer.(Art. 108(1)(i), Art. 108(1)(ii), Art. 108(1)(iii), Art. 108(1)(iv), Art. 109(1)(ii), Art. 109(1)(vii), Art. 109(1)(viii), Art. 112(1)(iii), Art. 112(1)(vii), Art. 112(1)(viii)) (the provisions it rests on)
• Where a representative or employee commits such an offence in the course of a company's business, the company is fined as well: up to 300 million yen for failing to keep users' electronic payment instruments separate or breaking an order suspending a funds transfer or electronic payment instruments business, up to 200 million yen for a funds transfer provider's failure to deposit security, and up to 100 million yen for a prepaid issuer's failure to deposit security.(Art. 115(1)(i), Art. 115(1)(ii), Art. 115(1)(iii)) (the provisions it rests on)
• Carrying on cryptoasset exchange services without registration, or letting another business operate them under one's name, is punishable by imprisonment (拘禁刑) of up to three years, a fine of up to 3 million yen, or both. Failing to keep users' money or cryptoassets separate, to entrust users' money, or to hold and keep separate the reserve cryptoassets (履行保証暗号資産), or breaking an order suspending a cryptoasset exchange business, is punishable by up to two years, a fine of up to 3 million yen, or both, and a company whose representative or employee commits one of these in its business can be fined up to 300 million yen.This is the rule until the change takes effect, 22 July 2027 at the latest.(Art. 107(1)(xii), Art. 107(1)(xiii), Art. 108(1)(v), Art. 108(1)(vi), Art. 108(1)(vii), Art. 115(1)(i)) (the provisions it rests on)
• On a day a Cabinet Order sets, no later than 22 July 2027, the offences about cryptoasset exchange leave this Act together with its cryptoasset rules (Act No. 64 of 2026); acts done before that day are still punished as the earlier provisions set.This is the rule from a day still to be set, 22 July 2027 at the latest.(Art. 107(1), Art. 108(1), Suppl. Prov. Art. 1(1), Suppl. Prov. Art. 89(1)) (the provisions it rests on)