Payment Services Act

(Notification of DiscontinuationRevocation of Business)Registration

If a cryptoasset exchange an electronic payment instruments intermediary service provider falls under any of the following items, it must notify the Prime Minister may revoke its registration referred to in Article 63-2 or order the Prime Minister electronic payment instruments intermediary service provider to that effect without delaysuspend all or part of its electronic payment instruments intermediary services, specifying a period of suspension not exceeding six months:

the cryptoasset exchange electronic payment instruments intermediary service provider discontinues all or partfalls under any of the cryptoasset exchange service; oritems of Article 63-5, paragraph (1);

a petition for commencement of bankruptcy proceedings, etc. is filed against a cryptoasset exchange service provider.the electronic payment instruments intermediary service provider has obtained the registration referred to in Article 63-2 through wrongful means; or

the electronic payment instruments intermediary service provider violates this Act or an order under this Act, or a disposition under this Act or an order.

If a cryptoasset exchange service provider discontinues all ofthe Prime Minister is unable to ascertain the cryptoasset exchange service, the registration locations of business offices or offices of the cryptoasset exchange an electronic payment instruments intermediary service provider referred to in Article 63-2 ceases to be effective. In this case, a person who has beenor the whereabouts of the electronic payment instruments intermediary service provider (if it is a corporation, the whereabouts of the cryptoasset exchange service provider is deemed to beofficer representing the corporation (in the case of a cryptoasset exchange service provider within the scope offoreign corporation, the representative person in Japan)), the purpose of completing Prime Minister, pursuant to the performanceprovisions of obligations borne by the service provider in relation to Cabinet Office Order, may issue public notice of that fact and revoke the exchangeregistration of cryptoassets, etc. carried out by it, and returning the users' property under the management relating tothe electronic payment instruments intermediary service provider under Article 63-2 if no application is made by the cryptoasset exchange services carried out by it or transferring electronic payment instruments intermediary service provider after thirty days have passed since the property to usersday of the public notice.

If a cryptoasset exchange service provider intends to discontinue all or part of the cryptoasset exchange service, to transfer all or partThe provisions of the cryptoasset exchange service, to implement a merger (limited to a merger in which the cryptoasset exchange service provider disappears), to dissolve for reasons other than a merger or an order to commence bankruptcy proceedings, or to have another service provider succeed all or partChapter III of the cryptoasset exchange services due to a company split, it must give public notice to that effect at least thirty days priorAdministrative Procedure Act do not apply to the relevant date and post a notice thereof in a place easily seen by the public at all of its business offices, pursuant todisposition under the provisions of Cabinet Office Orderthe preceding paragraph.

Having given public notice pursuant to the provisions of the preceding paragraph, a cryptoasset exchange service provider must notify the Prime Minister to that effect immediately.

Having given public notice pursuant to the provisions of paragraph (3) (excluding cases where a cryptoasset exchange service provider has given public notice concerning the succession of the relevant business by way of transfer of business, merger or company split, or for other reasons), it must promptly complete the performance of obligations borne by it in relation to the exchange of cryptoassets, etc. carried out in the course of the cryptoasset exchange services that it intends to discontinue, and promptly return the users' property under the management relating to the cryptoasset exchange services or transfer the property to users.

The provisions of Article 940, paragraph (1) (limited to the part pertaining to item (i)) and Article 940, paragraph (3) of the Companies Act apply mutatis mutandis to cases where a cryptoasset exchange service provider (excluding a foreign cryptoasset exchange service provider) gives public notice under the provisions of paragraph (3) by way of electronic public notice (meaning electronic public notice specified in Article 2, item (xxxiv) of that Act; the same applies in the following paragraph). In this case, any necessary technical replacement of terms is specified by Cabinet Order.

The provisions of Article 940, paragraph (1) (limited to the part pertaining to item (i)) and Article 940, paragraph (3), Article 941, Article 946, Article 947, Article 951, paragraph (2), Article 953, and Article 955 of the Companies Act apply mutatis mutandis to cases where a cryptoasset exchange service provider that is a foreign cryptoasset exchange service provider gives public notice under the provisions of paragraph (3) by way of electronic public notice. In this case, any necessary technical replacement of terms is specified by Cabinet Order.

When a cryptoasset exchange service provider has received the registration referred to in Article 63-22-2 (limited to a registration in which the particulars set forth in Article 63-22-3, paragraph (1), item (v) include business pertaining to a cryptoasset intermediary act; hereinafter the same in this paragraph) or the registration of change referred to in Article 63-22-6, paragraph (1) (limited to one resulting from newly intending to engage in business pertaining to a cryptoasset intermediary act; hereinafter the same in this paragraph), the registration of that cryptoasset exchange service provider referred to in Article 63-2 ceases to be effective. In this case, the person who has been that cryptoasset exchange service provider is deemed to be a cryptoasset exchange service provider within the scope of the purpose of completing the performance of obligations borne in relation to the exchange of cryptoassets, etc. carried out before receiving the registration referred to in Article 63-22-2 or the registration of change referred to in Article 63-22-6, paragraph (1), and returning the users' property under the management relating to the cryptoasset exchange services carried out before receiving those registrations or transferring the property to users.

(Completion of Performance of Obligations Due to RevocationDeletion of Registration)

With regard to a cryptoasset exchange service provider, whenIf the Prime Minister revokes the registration referred to in Article 63-2 has been revoked pursuant to the provisions of Article 63-17, paragraph (1) or (2) (excluding cases specified by Cabinet Office Order as being less likely to weaken the protection of users of cryptoasset exchange services or hinder the provision of cryptoasset exchange services in a proper and steady manner), the person who has been the cryptoasset exchange service provider must promptly complete the performance of obligations borne by it in relation to the exchange of cryptoassets, etc. carried out by it, and promptly return the users' property under the management relating to the cryptoasset exchange servicespreceding Article or transfer the property to users. In this case,when the person who has been the cryptoasset exchange service provider is deemedregistration referred to in Article 63-2 ceases to be a cryptoasset exchange service provider within the scope of the purpose of completingeffective pursuant to the performanceprovisions of these obligations, and returningArticle 63-22-2, paragraph (3), the property or transferringMinister must delete the property to usersregistration.

(Prohibition on Solicitation by Foreign Cryptoasset Exchange Service Providers)Public Notice of Supervisory Dispositions

A unregistered foreign cryptoasset exchange service provider referredIf the Prime Minister implements a disposition pursuant to in the provisions of Article 63-2 must not engage in acts of solicitation of a person in Japan set forth in63-20, paragraph (1) or (2), the Minister must give public notice to that effect pursuant to the itemsprovisions of Article 2, paragraph (15)Cabinet Office Order.

Chapter III-4 Electronic Payment Instruments and Cryptoasset Intermediary Services

Section 1 General Provisions

A person who has concluded a contract for the management of cryptoassets with a cryptoasset exchange service provider has the right to receive, in preference over other creditors, payments with regard to a claim for the transfer of cryptoassets that the person holds against the cryptoasset exchange service provider, for the return of the regulated cryptoassets (meaning the cryptoassets of the users of the cryptoasset exchange services that the cryptoasset exchange service provider manages separately from its own cryptoassets pursuant to the provisions of Article 63-11, paragraph (2) and the performance-guarantee cryptoassets).

The provisions of Article 333 of the Civil Code apply mutatis mutandis to the right referred to in the preceding paragraph.

Particulars necessary for the fulfillment of the right prescribed in paragraph (1) are specified by Cabinet Order.

If a person to whom a cryptoasset exchange service has been entrusted by a cryptoasset exchange service provider or any other related person of the cryptoasset exchange service provider is requested by the Prime Minister to extend their cooperation necessary for the fulfillment of the right referred to in paragraph (1) of the preceding Article pertaining to users' cryptoassets managed by the person in relation to the cryptoasset exchange service provided by the cryptoasset exchange service provider, the person is to endeavor to respond to the request.

RegistrationNotification of Electronic Payment Instruments and Cryptoasset Intermediary Service ProvidersDiscontinuation of Business

Notwithstanding If an electronic payment instruments intermediary service provider intends to discontinue all of the provisions electronic payment instruments intermediary services, to transfer all of Article 62-3 and Article 63-2, a person registered by the Prime Minister may providethe electronic payment instruments intermediary services, to implement a merger (limited to a merger in which the electronic payment instruments and cryptoasset intermediary service provider disappears), to dissolve for reasons other than a merger or an order to commence bankruptcy proceedings, or to have another person succeed all of the electronic payment instruments intermediary services due to a company split, it must notify the Prime Minister to that effect in advance.

If an electronic payment instruments intermediary service provider comes to fall under any of the cases set forth in the following items, the person specified in the relevant item must, without delay, notify the Prime Minister to that effect.

when the provider discontinues part of its electronic payment instruments intermediary services, transfers part of its electronic payment instruments intermediary services, or has part of its electronic payment instruments intermediary services succeeded to by a company split:the individual or corporation that discontinued those electronic payment instruments intermediary services, transferred them, or caused them to be succeeded to;

when an individual who is an electronic payment instruments intermediary service provider dies:the heir of that individual; or

when an order to commence bankruptcy proceedings is made with respect to a corporation that is an electronic payment instruments intermediary service provider:the bankruptcy trustee of that corporation.

If an electronic payment instruments intermediary service provider falls under any of the following items, the registration of that electronic payment instruments intermediary service provider under Article 63-2 ceases to be effective. In this case, the person who was that electronic payment instruments intermediary service provider is still deemed to be an electronic payment instruments intermediary service provider within the scope of the purpose of completing the performance of the obligations it bears in connection with the electronic payment instruments intermediary services it conducts.

when the provider has made a notification under paragraph (1) or comes to fall under either of the cases set forth in item (ii) or (iii) of the preceding paragraph; or

when the provider comes to fall under any of the following:

when it has obtained the registration under Article 62-3 (limited to a registration in which the particulars set forth in Article 62-4, paragraph (1), item (vii) include electronic payment instruments-related business) or the registration of change under Article 62-7, paragraph (1) (limited to one resulting from seeking to newly conduct electronic payment instruments-related business); or

when there is no longer a principal electronic payment instruments service provider.

Application forCompletion of Performance of Obligations Due to Revocation of Registration

Pursuant toIf the provisions registration under Article 63-2 of an electronic payment instruments intermediary service provider is revoked pursuant to Article 63-20, paragraph (1) or (2) (excluding cases specified by Cabinet Office Order, a as those in which there is little risk of failing to protect the users of electronic payment instruments intermediary services or of hindering the proper and steady performance of electronic payment instruments intermediary services), the person who intends to be registered referred to was that electronic payment instruments intermediary service provider must promptly complete the performance of the obligations it bears in connection with the preceding Article must submit a written application for registration containingelectronic payment instruments intermediary services it conducts. In this case, the following particulars person who was that electronic payment instruments intermediary service provider is still deemed to be an electronic payment instruments intermediary service provider within the Prime Minister:scope of the purpose of completing the performance of those obligations.

trade name, other name or name, and address;

in cases of a corporation, the name or other name of its officers (including, in cases of a foreign corporation, persons treated in the same manner under laws and regulations of a foreign state and the representative person in Japan; the same applies hereinafter in this Chapter);

name and location of business offices or offices pertaining to the electronic payment instruments and cryptoasset intermediary services;

in cases of a corporation, the amount of capital or contribution;

categories of electronic payment instruments and cryptoasset intermediary services (meaning the categories of business pertaining to the acts set forth in the items of Article 2, paragraph (18); the same applies in Article 63-22-6, paragraph (1), Article 63-22-24, paragraph (2) and Article 107, item (xiv));

the particulars specified in (a) or (b), depending on the category of cases set forth in (a) or (b):

if the applicant carries out electronic payment instruments intermediary acts: the name of the electronic payment instrument handled and the trade name or name and address of the person that issues the electronic payment instrument;

if the applicant carries out cryptoasset intermediary acts: the name of the cryptoasset handled;

the particulars specified in (a) or (b), depending on the category of cases set forth in (a) or (b):

if the applicant carries out electronic payment instruments intermediary acts: the trade name of the electronic payment instruments service provider from which the applicant receives entrustment (hereinafter referred to as the "principal electronic payment instruments service provider" in this Chapter);

if the applicant carries out cryptoasset intermediary acts: the trade name of the cryptoasset exchange service provider from which the applicant receives entrustment (hereinafter referred to as the "principal cryptoasset exchange service provider" in this Chapter);

details and means of the electronic payment instruments and cryptoasset intermediary services;

if part of the electronic payment instruments and cryptoasset intermediary services is entrusted to a third party, the details of the business pertaining to the entrustment and the name or trade name or other name and address of the third party to whom the electronic payment instruments and cryptoasset intermediary services are entrusted;

type of businesses, if the service provider conducts other businesses; and

other particulars specified by Cabinet Office Order.

A document in which the applicant pledges that the applicant does not fall under any of the items of Article 63-22-5, paragraph (1), documents containing particulars concerning the establishment of a system for ensuring the provision of the electronic payment instruments and cryptoasset intermediary services in a proper and steady manner, and other documents specified by Cabinet Office Order must be attached to the written application for registration referred to in the preceding paragraph.

RegisterProhibition of Solicitation by Foreign Electronic Payment Instruments and Cryptoasset Intermediary Service Providers

The Prime Minister must, when an application for registration referred to in Article 63-22-2 is filed, register the following particularsA foreign electronic payment instruments intermediary service provider that is not registered under Article 63-2 must not engage in the registeracts of electronic payment instruments and cryptoasset intermediary service providers, except when refusing the registration pursuantsolicitation of a person in Japan with regard to the provisions of paragraph (1) of the following Article:electronic payment instruments intermediary acts or acts equivalent thereto.

particulars set forth under the items of paragraph (1) of the preceding Article;

date of registration and registration number.

If the Prime Minister registers the particulars under the provisions of the preceding paragraph, the Minister must notify the applicant to that effect without delay.

The Prime Minister must make the register of electronic payment instruments and cryptoasset intermediary service providers available for public inspection.

The Prime Minister must refuse registration when an applicant falls under any of the following items, or a written application for registration or its accompanying documents contain a false statement about important particulars, or lack a statement about important particulars:

a person who falls under any of the following:

a person that has not established a system for the provision of the electronic payment instruments and cryptoasset intermediary services in a proper and steady manner;

a person that has not established a system necessary for ensuring compliance with the provisions of this Chapter;

a person for whom the applicant's principal electronic payment instruments service provider or principal cryptoasset exchange service provider (hereinafter referred to as the "principal electronic payment instruments service provider, etc." in this Chapter and Article 88, item (i)) has not joined a certified association for payment service providers;

a person that intends to use a trade name or other name that is identical to the one currently being used by an electronic payment instruments service provider, a cryptoasset exchange service provider or another electronic payment instruments and cryptoasset intermediary service provider, or that may be misidentified as any of them;

a person who had their registration referred to in Article 62-3 revoked pursuant to the provisions of Article 62-22, paragraph (1) or (2), had their registration referred to in Article 63-2 revoked pursuant to the provisions of Article 63-17, paragraph (1) or (2), or had their registration referred to in Article 63-22-2 revoked pursuant to the provisions of Article 63-22-20, paragraph (1) or (2), or had the registration, permission or license of the same type in a foreign state (including other administrative dispositions similar to the registration, permission or license) revoked pursuant to the provisions of laws and regulations of the foreign state equivalent to this Act or the Banking Act, etc., and for whom five years have not elapsed from the date of the revocation;

a person who has received an order to discontinue electronic payment instruments services pursuant to the provisions of Article 62-22, paragraph (1) as applied pursuant to Article 62-8, paragraph (2) following the deemed replacement of terms, or has received an order to discontinue the same type of services as electronic payment instruments services pursuant to the provisions of laws and regulations of a foreign state that are equivalent to this Act or the Banking Act, etc., and for whom five years have not elapsed from the date of the order;

a person who has been punished by a fine (including a punishment pursuant to laws and regulations of a foreign state equivalent to this) for violating the provisions of this Act, the Financial Instruments and Exchange Act, the Banking Act, etc., the Act on Engagement in Trust Business by Financial Institutions, the Act Regulating the Receipt of Contributions, the Receipt of Deposits, and Interest Rates, or the Trust Business Act, or laws and regulations of a foreign state equivalent thereto, and for whom five years have not elapsed from the day on which the execution of the sentence ended or from the day on which the sentence ceased to be executed;

a person whose other business is found to be against the public interest;

in cases of a corporation, a person that falls under any of the following:

a person that is a foreign corporation and does not have a representative person in Japan (limited to a person who is domiciled in Japan);

a person that has, among its officers, a person who falls under any of the following:

a person specified by Cabinet Office Order as being unable to properly perform their duties pertaining to the electronic payment instruments and cryptoasset intermediary services due to a mental or physical disorder;

a person who has not had their rights restored after receiving an order to commence bankruptcy proceedings, or a person equivalent thereto pursuant to laws and regulations of a foreign state;

a person who has been sentenced to imprisonment or heavier punishment (including equivalent punishment pursuant to laws and regulations of a foreign state), and for whom five years have not elapsed from the day on which the execution of the sentence ended or from the day on which the sentence ceased to be executed;

a person who falls under (g) of the preceding item;

if an electronic payment instruments and cryptoasset intermediary service provider that is a corporation has had its registration referred to in Article 63-22-2 revoked pursuant to the provisions of Article 63-22-20, paragraph (1) or (2), or a corporation has had the registration of the same type in a foreign state (including other administrative dispositions similar to the registration) revoked pursuant to the provisions of laws and regulations of the foreign state equivalent to this Act, a person who was an officer of the corporation at any time during the thirty days prior to the date of the revocation and for whom five years have not elapsed from the date of the revocation, or a person specified by Cabinet Order as similar thereto.

in the case of an individual, a person who falls under any of the following:

an individual who has an address in a foreign country and has not appointed an agent in Japan;

a person who falls under any of (b), (1) through (3) or (5) of the preceding item;

a minor who does not have the same capacity to act as an adult with regard to electronic payment instruments and cryptoasset intermediary services, whose legal representative (including, where the legal representative is a corporation, its officers) falls under any of (b), (1) through (5) of the preceding item.

If the Prime Minister refuses the registration pursuant to the provisions of the preceding paragraph, the Minister must notify the applicant to that effect by indicating the reason therefor without delay.

When an electronic payment instruments and cryptoasset intermediary service provider intends to change any of the particulars set forth in Article 63-22-3, paragraph (1), item (v) (limited to changes due to its intention to provide a new type of business), the electronic payment instruments and cryptoasset intermediary service provider must have the change registered by the Prime Minister, pursuant to the provisions of Cabinet Office Order.

The provisions of the preceding three Articles apply mutatis mutandis to the registration of change referred to in the preceding paragraph. In this case, the term the "following particulars" in Article 63-22-3, paragraph (1) is replaced with the "particulars pertaining to the change", the term "any of the items of Article 63-22-5, paragraph (1)" in paragraph (2) of that Article is replaced with "Article 63-22-5, paragraph (1), item (i), (a) through (c)", the term the "following particulars" in Article 63-22-4, paragraph (1) is replaced with the "particulars pertaining to the change to the particulars set forth in paragraph (1), item (v) of the preceding Article", and the term "any of the following items" in paragraph (1) of the preceding Article is replaced with "any of (a) through (c) of item (i)".

When an electronic payment instruments and cryptoasset intermediary service provider intends to change any of the particulars set forth in Article 63-22-3, paragraph (1), items (vi) through (viii) (excluding cases specified by Cabinet Office Order as being less likely to weaken the protection of users of electronic payment instruments and cryptoasset intermediary services or hinder the proper and steady performance of electronic payment instruments and cryptoasset intermediary services), the electronic payment instruments and cryptoasset intermediary service provider must notify the Prime Minister to that effect in advance.

If any of the particulars set forth in the items of Article 63-22-3, paragraph (1) are changed (excluding the case in which registration of change has been made under the provisions of paragraph (1), the case in which a notification has been filed under the provisions of the preceding paragraph, the case in which a notification has been filed under the provisions of Article 63-22-23, paragraph (1), cases falling under any of the items of paragraph (2) of that Article, and cases falling under any of items (ii) through (iv) of paragraph (3) of that Article), the electronic payment instruments and cryptoasset intermediary service provider must notify the Prime Minister to that effect without delay.

If an electronic payment instruments and cryptoasset intermediary service provider that carries out business pertaining to all of the acts set forth in the items of Article 2, paragraph (18) comes to fall under any of the cases set forth in the following items (excluding where it falls under all of the cases set forth in the following items), it is deemed that a notification under the provisions of the preceding paragraph has been filed with the content specified in the relevant item:

when any of the following applies: the effect that it will not carry out business pertaining to electronic payment instruments intermediary acts with regard to the particulars set forth in Article 63-22-3, paragraph (1), item (v):

when it has received the registration referred to in Article 62-3 (limited to registration in which the particulars set forth in Article 62-4, paragraph (1), item (vii) include electronic payment instruments-related business) or the registration of change referred to in Article 62-7, paragraph (1) (limited to registration of change due to its intention to newly carry out electronic payment instruments-related business);

when there is no longer a principal electronic payment instruments service provider.

when any of the following applies: the effect that it will not carry out business pertaining to cryptoasset intermediary acts with regard to the particulars set forth in Article 63-22-3, paragraph (1), item (v):

when it has received the registration referred to in Article 63-2;

when there is no longer a principal cryptoasset exchange service provider.

When the Prime Minister has accepted a notification under the provisions of paragraph (3) or (4) (including where a notification is deemed to have been filed under the provisions of paragraph (4) pursuant to the provisions of the preceding paragraph), the Prime Minister must register the notified particulars in the register of electronic payment instruments and cryptoasset intermediary service providers.

An electronic payment instruments and cryptoasset intermediary service provider must not have another person provide electronic payment instruments and cryptoasset intermediary services in the name of the electronic payment instruments and cryptoasset intermediary service provider.

When an electronic payment instruments and cryptoasset intermediary service provider intends to carry out the acts set forth in the items of Article 2, paragraph (18) (referred to as "electronic payment instruments and cryptoasset intermediary acts" in the following Article and Article 63-22-14), the electronic payment instruments and cryptoasset intermediary service provider must, in advance, clarify the following particulars to users:

the trade name of the principal electronic payment instruments service provider, etc.;

the fact that the provider has no authority to act as agent for the principal electronic payment instruments service provider, etc.;

the purport of the provisions of Article 63-22-13;

other particulars specified by Cabinet Office Order.

An electronic payment instruments and cryptoasset intermediary service provider must not, with a user of the electronic payment instruments and cryptoasset intermediary services it carries out as the other party, perform any of the acts set forth in the items of Article 2, paragraph (10) and the items of paragraph (15) of that Article, other than electronic payment instruments and cryptoasset intermediary acts performed upon commission from a principal electronic payment instruments service provider, etc. (excluding the acts set forth in the items of paragraph (10) of that Article performed where the electronic payment instruments and cryptoasset intermediary service provider is an electronic payment instruments service provider, and the acts set forth in the items of paragraph (15) of that Article performed where the electronic payment instruments and cryptoasset intermediary service provider is a cryptoasset exchange service provider).

Section 2 Business

An electronic payment instruments and cryptoasset intermediary service provider must, pursuant to the provisions of Cabinet Office Order, take necessary measures for preventing leakage, loss, or damage to information pertaining to the electronic payment instruments and cryptoasset intermediary services and other measures for the security management of relevant information.

If an electronic payment instruments and cryptoasset intermediary service provider entrusts (including the case under multi-tier entrustment arrangements) part of the electronic payment instruments and cryptoasset intermediary services to a third party, the electronic payment instruments and cryptoasset intermediary service provider must provide guidance to the third party to whom the relevant business has been entrusted and take other measures necessary for ensuring the operation of the business in a proper and steady manner pursuant to the provisions of Cabinet Office Order.

When an electronic payment instruments and cryptoasset intermediary service provider carries out business pertaining to electronic payment instruments intermediary acts, it must, pursuant to the provisions of Cabinet Office Order, provide explanation to prevent users from mistaking the business pertaining to electronic payment instruments intermediary acts for the business carried out by deposit-taking institutions, a funds transfer service provider, or a specified trust company, provide information about details of electronic payment instruments, fees and other terms and conditions of contracts related to the business pertaining to electronic payment instruments intermediary acts, and take other measures necessary for protecting the users of the business pertaining to electronic payment instruments intermediary acts and ensuring the provision of the business pertaining to electronic payment instruments intermediary acts in a proper and steady manner.

When an electronic payment instruments and cryptoasset intermediary service provider carries out business pertaining to cryptoasset intermediary acts, it must, pursuant to the provisions of Cabinet Office Order, provide explanation concerning the characteristics of cryptoassets, and information about fees and other terms and conditions of contracts pertaining to the business pertaining to cryptoasset intermediary acts, and take other measures necessary for protecting the users of the business pertaining to cryptoasset intermediary acts and ensuring the provision of the business pertaining to cryptoasset intermediary acts in a proper and steady manner.

An electronic payment instruments and cryptoasset intermediary service provider must not carry out cryptoasset intermediary acts by granting credit to a user of the business pertaining to cryptoasset intermediary acts.

An electronic payment instruments and cryptoasset intermediary service provider must not, for any reason, receive a deposit of money or other property from a user, or have a person specified by Cabinet Order as being closely related to that electronic payment instruments and cryptoasset intermediary service provider deposit a user's money or other property, in connection with the electronic payment instruments and cryptoasset intermediary services it provides.

The person specified in each of the following items in accordance with the category of acts set forth in that item is liable to compensate for any loss or damage that the electronic payment instruments and cryptoasset intermediary service provider that entrusted the act has caused to users in relation to the act set forth in that item; provided, however, that this does not apply if the person specified in that item has exercised reasonable care in entrusting the act to that electronic payment instruments and cryptoasset intermediary service provider and has endeavored to prevent the occurrence of loss or damage caused to users in relation to the electronic payment instruments and cryptoasset intermediary acts carried out by that person.

electronic payment instruments intermediary acts: the principal electronic payment instruments service provider that entrusted those electronic payment instruments intermediary acts;

cryptoasset intermediary acts: the principal cryptoasset exchange service provider that entrusted those cryptoasset intermediary acts.

The provisions of Article 63-9-2 and Article 63-9-3 apply mutatis mutandis to an electronic payment instruments and cryptoasset intermediary service provider that carries out cryptoasset intermediary acts. In this case, the phrase "concerning the cryptoasset exchange service" in Article 63-9-2 is deemed to be replaced with "concerning the business pertaining to cryptoasset intermediary acts"; in item (i) of that Article, the phrase "trade name" is deemed to be replaced with "trade name, other name or name"; in Article 63-9-3, item (i), the phrase "when concluding a contract for engaging in" is deemed to be replaced with "when intermediating the conclusion of a contract for engaging in", the phrase "user of cryptoasset exchange service" is deemed to be replaced with "user of business pertaining to cryptoasset intermediary acts", the phrase "any acts set forth in the items of Article 2, paragraph (15)" is deemed to be replaced with "any acts set forth in the items of Article 2, paragraph (15) that the principal cryptoasset exchange service provider (meaning the principal cryptoasset exchange service provider prescribed in Article 63-22-3, paragraph (1), item (vii), (b); the same applies hereinafter in this item) carries out", and the phrase "conclusion, etc. of a cryptoasset exchange contract" is deemed to be replaced with "intermediation, etc. of the conclusion of a cryptoasset exchange contract"; in item (ii) of that Article, the phrase "concerning the cryptoasset exchange service" is deemed to be replaced with "concerning the business pertaining to cryptoasset intermediary acts"; in item (iii) of that Article, the phrase "concluding a cryptoasset exchange contract, etc." is deemed to be replaced with "intermediating the conclusion of a cryptoasset exchange contract, etc." and the phrase "concerning the cryptoasset exchange service" is deemed to be replaced with "concerning the business pertaining to cryptoasset intermediary acts"; and in item (iv) of that Article, the phrase "cryptoasset exchange services" is deemed to be replaced with "business pertaining to cryptoasset intermediary acts".

Section 3 Supervision

Pursuant to the provisions of Cabinet Office Order, an electronic payment instruments and cryptoasset intermediary service provider must prepare and preserve the books and documents on its electronic payment instruments and cryptoasset intermediary services.

Pursuant to the provisions of Cabinet Office Order, an electronic payment instruments and cryptoasset intermediary service provider must prepare a written report on its electronic payment instruments and cryptoasset intermediary services for each business year and submit it to the Prime Minister.

When the Prime Minister finds it necessary for the provision of the electronic payment instruments and cryptoasset intermediary services in a proper and steady manner, the Minister may order an electronic payment instruments and cryptoasset intermediary service provider to submit reports or materials that can be used as reference for its business or property, or have officials enter the business office, office or other facility of that electronic payment instruments and cryptoasset intermediary service provider, ask questions about the status of its business or property or inspect its books and documents or other items.

When the Prime Minister finds it particularly necessary for the provision of the electronic payment instruments and cryptoasset intermediary services in a proper and steady manner, to the extent necessary for this, the Minister may order a person to whom business has been entrusted by the electronic payment instruments and cryptoasset intermediary service provider (including persons to whom the business has been entrusted by the entrusted person (including those under multi-tier entrustment arrangements); hereinafter the same applies in this Article) to submit reports or materials that can be used as reference for the status of the business or property of the electronic payment instruments and cryptoasset intermediary service provider, or have officials enter the facility of the person to whom business has been entrusted by the electronic payment instruments and cryptoasset intermediary service provider, ask questions about the status of the business or property of the electronic payment instruments and cryptoasset intermediary service provider or inspect its books and documents or other items.

A person to whom business has been entrusted by an electronic payment instruments and cryptoasset intermediary service provider referred to in the preceding paragraph may refuse the submission of reports or materials, or the questions or inspection under the provisions of that paragraph if there are reasonable grounds for doing so.

When the Prime Minister finds it necessary for the provision of the electronic payment instruments and cryptoasset intermediary services in a proper and steady manner, to the extent necessary for this, the Minister may order an electronic payment instruments and cryptoasset intermediary service provider to take necessary measures to improve the operation of its business or its financial status or other measures necessary for the purpose of supervision.

If an electronic payment instruments and cryptoasset intermediary service provider falls under any of the following items, the Prime Minister may revoke its registration referred to in Article 63-22-2 or order the electronic payment instruments and cryptoasset intermediary service provider to suspend all or part of its electronic payment instruments and cryptoasset intermediary services, specifying a period of suspension not exceeding six months:

the electronic payment instruments and cryptoasset intermediary service provider has come to fall under any of the items of Article 63-22-5, paragraph (1);

when the registration referred to in Article 63-22-2 or the change referred to in Article 63-22-6, paragraph (1) has been registered through wrongful means; or

when it violates this Act or an order under this Act, or a disposition based on this Act or an order.

If the Prime Minister is unable to ascertain the location of a business office or office of an electronic payment instruments and cryptoasset intermediary service provider, or the whereabouts of an electronic payment instruments and cryptoasset intermediary service provider (in the case of a corporation, the whereabouts of the officer representing the corporation (in the case of a foreign corporation, the representative person in Japan)), the Prime Minister may, pursuant to the provisions of Cabinet Office Order, issue a public notice of that fact and, if no application is made by the electronic payment instruments and cryptoasset intermediary service provider after 30 days have passed since the day of the public notice, revoke the registration of that electronic payment instruments and cryptoasset intermediary service provider under Article 63-22-2.

The provisions of Chapter III of the Administrative Procedure Act do not apply to a disposition under the preceding paragraph.

If the Prime Minister revokes the registration referred to in Article 63-22-2 pursuant to provisions of paragraph (1) or (2) of the preceding Article or when the registration referred to in Article 63-22-2 ceases to be effective pursuant to the provisions of Article 63-22-23, paragraph (3), the Minister must delete the registration.

If the Prime Minister takes a disposition under Article 63-22-20, paragraph (1) or (2), the Prime Minister must give public notice to that effect, pursuant to the provisions of Cabinet Office Order.

Section 4 Miscellaneous Provisions