Payment Services Act

If an electronic payment instruments and cryptoasset intermediary service provider intends to discontinue all of the electronic payment instruments and cryptoasset intermediary services, to transfer all of the electronic payment instruments and cryptoasset 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 to all of the electronic payment instruments and cryptoasset intermediary services due to a company split, it must notify the Prime Minister to that effect in advance.

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

when the provider has discontinued part of the electronic payment instruments and cryptoasset intermediary services, transferred part of the electronic payment instruments and cryptoasset intermediary services, or had part of the electronic payment instruments and cryptoasset intermediary services succeeded to by a company split:the individual or corporation that discontinued, transferred or caused the succession of those electronic payment instruments and cryptoasset intermediary services;

when an individual who is an electronic payment instruments and cryptoasset intermediary service provider has died:that individual's heir; or

when an order to commence bankruptcy proceedings has been made with respect to a corporation that is an electronic payment instruments and cryptoasset intermediary service provider:its bankruptcy trustee.

The registration of an electronic payment instruments and cryptoasset intermediary service provider under Article 63-22-2 ceases to be effective if it falls under any of the following items. In this case, a person who was that electronic payment instruments and cryptoasset intermediary service provider is still deemed to be an electronic payment instruments and cryptoasset intermediary service provider within the scope of the purpose of completing performance of the obligations it bears with regard to the electronic payment instruments and cryptoasset intermediary services that it conducts.

when the electronic payment instruments and cryptoasset intermediary service provider has made a notification under paragraph (1) or has come to fall under either of the cases set forth in the preceding paragraph, item (ii) or item (iii);

when an electronic payment instruments and cryptoasset intermediary service provider that conducts each of the businesses relating to the acts set forth in the items of Article 2, paragraph (18) has come to fall under any of the following:

when it has received the registration under Article 62-3 (limited to a registration for which the particulars set forth in Article 62-4, paragraph (1), item (vii) include electronic payment instruments-related business; the same applies in (c) and the following item, (a)) or has had the change referred to in Article 62-7, paragraph (1) registered (limited to a change made by reason of intending to newly conduct electronic payment instruments-related business; the same applies in (c) and that item, (a)), and the registration under Article 63-2;

when there ceases to be a principal electronic payment instruments service provider and a principal cryptoasset exchange service provider;

when it has received the registration under Article 62-3 or has had the change referred to in Article 62-7, paragraph (1) registered, and there ceases to be a principal cryptoasset exchange service provider; or

when it has received the registration under Article 63-2 and there ceases to be a principal electronic payment instruments service provider;

when an electronic payment instruments and cryptoasset intermediary service provider that conducts business relating to electronic payment instruments intermediary acts (excluding a person that conducts business relating to cryptoasset intermediary acts) has come to fall under any of the following:

when it has received the registration under Article 62-3 or has had the change referred to in Article 62-7, paragraph (1) registered; or

when there ceases to be a principal electronic payment instruments service provider; or

when an electronic payment instruments and cryptoasset intermediary service provider that conducts business relating to cryptoasset intermediary acts (excluding a person that conducts business relating to electronic payment instruments intermediary acts) has come to fall under any of the following:

when it has received the registration under Article 63-2; or

when there ceases to be a principal cryptoasset exchange service provider.

If the registration of an electronic payment instruments and cryptoasset intermediary service provider under Article 63-22-2 has been revoked pursuant to Article 63-22-20, paragraph (1) or (2) (excluding a case specified by Cabinet Office Order as one in which there is little risk of failing to protect users of the electronic payment instruments and cryptoasset intermediary services or of impeding the proper and reliable performance of the electronic payment instruments and cryptoasset intermediary services), the person who was that electronic payment instruments and cryptoasset intermediary service provider must promptly complete performance of the obligations it bears with regard to the electronic payment instruments and cryptoasset intermediary services that it conducts. In this case, the person who was that electronic payment instruments and cryptoasset intermediary service provider is still deemed to be an electronic payment instruments and cryptoasset intermediary service provider within the scope of the purpose of completing performance of those obligations.

If, with regard to an electronic payment instruments and cryptoasset intermediary service provider that conducts each of the businesses relating to the acts set forth in the items of Article 2, paragraph (18), it is deemed pursuant to Article 63-22-6, paragraph (5) that a notification has been made that it will not conduct business of one type with regard to the particulars set forth in Article 63-22-3, paragraph (1), item (v) (limited to cases that fall under Article 63-22-6, paragraph (5), item (i), (b) or item (ii), (b)), that electronic payment instruments and cryptoasset intermediary service provider must promptly complete performance of the obligations it bears in relation to that type of business. In this case, that electronic payment instruments and cryptoasset intermediary service provider is deemed to be registered under Article 63-22-2 as an electronic payment instruments and cryptoasset intermediary service provider conducting that type of business, within the scope of the purpose of completing performance of those obligations.

A foreign electronic payment instruments and cryptoasset intermediary service provider that has not received the registration under Article 63-22-2 must not engage in solicitation of a person in Japan regarding the acts set forth in the items of Article 2, paragraph (18) or equivalent acts.

No person may provide funds transfer transaction analysis services unless the person has obtained a license from the competent minister; provided, however, that this does not apply if the scale and manner of carrying out the services fall under cases specified by order of the competent ministry in consideration of the number of financial institutions, etc. involved in the services (limited to those that entrust a person engaging in funds transfer transaction analysis services to carry out the business involved in any of the acts set forth in the items of Article 2, paragraph (2117) (hereinafter referred to as "funds transfer transaction analysis business" in this Chapter) in connection with funds transfer transactions carried out thereby), and other particulars.

categories of funds transfer transaction analysis services (meaning the categories of business related to the acts set forth in the items of Article 2, paragraph (2117); the same applies in Article 63-33, paragraphs (1) and (2) and Article 107, item (xixxvi));

the person set forth in Article 2, paragraph (3228), item (v) or item (vi):the Minister of Health, Labour and Welfare;

the person set forth in Article 2, paragraph (3228), items (ix) through (xv):the Minister of Agriculture, Forestry and Fisheries; and

the person set forth in Article 2, paragraph (3228), item (xvi):the Minister of Finance and the Minister of Economy, Trade and Industry (the Minister of Economy, Trade and Industry if the funds transfer transaction analysis service provider subject to the disposition engages in the act set forth in paragraph (2117), item (i) of that Article in the course of trade).

If the Minister of Health, Labour and Welfare, the Minister of Agriculture, Forestry and Fisheries or the Minister of Economy, Trade and Industry has reasonable grounds to suspect that the proper and steady provision of funds transfer transaction analysis services by a funds transfer transaction analysis service provider (limited to one engaging in the act set forth in Article 2, paragraph (2117), item (i) in the course of trade) is not ensured, and therefore finds it necessary to take appropriate measures with regard to the funds transfer transaction analysis service provider, the relevant minister may state their opinion to that effect to the Prime Minister and the Minister of Finance.

If the Minister of Finance, the Minister of Health, Labour and Welfare, the Minister of Agriculture, Forestry and Fisheries or the Minister of Economy, Trade and Industry has reasonable grounds to suspect that the proper and steady provision of funds transfer transaction analysis services by a funds transfer transaction analysis service provider (excluding one engaging in the act set forth in Article 2, paragraph (2117), item (i) in the course of trade) is not ensured, and therefore finds it necessary to take appropriate measures with regard to the funds transfer transaction analysis service provider, the relevant minister may state their opinion to that effect to the Prime Minister.

if a funds transfer transaction analysis service provider engages in the act set forth in Article 2, paragraph (2117), item (i) in the course of trade:the Prime Minister and the Minister of Finance; and

if a funds transfer transaction analysis service provider engages in the act set forth in Article 2, paragraph (2117), item (i) in the course of trade:Cabinet Office Order and Ministry of Finance Order; and

The Prime Minister may, pursuant to the provisions of Cabinet Order, certify a general incorporated association established by an issuer of prepaid payment instruments, a funds transfer service provider, or an electronic payment instruments service provider or a cryptoasset exchange service provider that is found to satisfy the following requirements for a person who engages in the business prescribed in the following Article (hereinafter referred to as "certified businesses" in this Chapter) upon that person's application:

the general incorporated association aims to ensure the operation of the business of issuing prepaid payment instruments in a proper manner (meaning prepaid payment instruments specified in Article 3, paragraph (1); the same applies hereinafter in this Chapter), the funds transfer services, or the electronic payment instruments services or the cryptoasset exchange services as well as contributing to the sound development of these businesses and protection of the interests of the users (including member shops specified in Article 10, paragraph (1), item (iv); hereinafter the same applies in this Chapter);

the general incorporated association's articles of incorporation include a provision to the effect that its member (hereinafter referred to as "member" in this Chapter) are issuers of prepaid payment instruments, funds transfer service providers, or electronic payment instruments service providers or cryptoasset exchange service providers;

the business of providing guidance, recommendations and other services to members and electronic payment instruments and cryptoasset intermediary service providers in order to ensure compliance with the provisions of this Act and other laws and regulations and the rules referred to in item (iii), when members engage in the business of issuing prepaid payment instruments, funds transfer services, or electronic payment instruments services or cryptoasset exchange services, or when electronic payment instruments and cryptoasset intermediary service providers (limited to those whose principal electronic payment instruments service provider, etc. is a member; the same applies hereinafter in this Chapter except in Article 92 and Article 97) engage in electronic payment instruments and cryptoasset intermediary services;

the business of providing guidance, recommendation, etc. to the members in relation to their business of issuing prepaid payment instruments, funds transfer services, or electronic payment instruments services or cryptoasset exchange services, or to electronic payment instruments and cryptoasset intermediary service providers in relation to their electronic payment instruments and cryptoasset intermediary services, that is necessary for ensuring the appropriateness of the terms and conditions of contracts or otherwise protecting the interests of users of the business of issuing prepaid payment instruments, the funds transfer services, the electronic payment instruments services, the cryptoasset exchange services or the electronic payment instruments and cryptoasset intermediary services;

establishment of the rules that are necessary for the appropriate management of the business of issuing prepaid payment instruments, the funds transfer services, or the electronic payment instruments services or the cryptoasset exchange services carried out by the members, or the electronic payment instruments and cryptoasset intermediary services carried out by electronic payment instruments and cryptoasset intermediary service providers, and information used in these businesses;

investigation of the status of compliance by members and electronic payment instruments and cryptoasset intermediary service providers with this Act or an order under this Act or a disposition under this Act or the order, or the rules prescribed in the preceding item;

collection, organization, and provision of information necessary for the protection of the interests of users of the business of issuing prepaid payment instruments, the funds transfer services, the electronic payment instruments services, the cryptoasset exchange services or the electronic payment instruments and cryptoasset intermediary services;

handling of complaints from users related to the business of issuing prepaid payment instruments, the funds transfer services, or the electronic payment instruments services or the cryptoasset exchange services carried out by members, or the electronic payment instruments and cryptoasset intermediary services carried out by electronic payment instruments and cryptoasset intermediary service providers;

publicity to the users of prepaid payment instruments, the funds transfer services, the electronic payment instruments services, the cryptoasset exchange services or the electronic payment instruments and cryptoasset intermediary services and other businesses necessary for the achievement of the purposes of the certified association for payment service providers; and

beyond what is set forth in the preceding items, businesses that contribute to the sound development of the business of issuing prepaid payment instruments, the funds transfer services, the electronic payment instruments services, the cryptoasset exchange services or the electronic payment instruments and cryptoasset intermediary services and the protection of the users of these businesses.

A certified association for payment service providers must have the ability to provide the users of prepaid payment instruments, the funds transfer services, or the electronic payment instruments services or the cryptoasset exchange services with some of the information that help protect the users provided by the Prime Minister pursuant to the provisions of Article 97.

When a user of prepaid payment instruments, funds transfer services, electronic payment instruments services, cryptoasset exchange services or electronic payment instruments and cryptoasset intermediary services files an application for resolution of a complaint concerning the business of issuing prepaid payment instruments, funds transfer services, or electronic payment instruments services or cryptoasset exchange services carried out by a member, or the electronic payment instruments and cryptoasset intermediary services carried out by an electronic payment instruments and cryptoasset intermediary service provider, a certified association for payment service providers must respond to requests for consultation, provide necessary advice to the applicant, investigate the circumstances pertaining to the complaint, and request the member or the electronic payment instruments and cryptoasset intermediary service provider to expedite the process by informing the details of the complaint.

When a certified association for payment service providers finds it necessary for resolving a complaint pertaining to an application referred to in the preceding paragraph, it may request the relevant member or the relevant electronic payment instruments and cryptoasset intermediary service provider to provide a written or oral explanation or submit materials.

When a certified association for payment service providers makes a request to a member or an electronic payment instruments and cryptoasset intermediary service provider pursuant to the provisions of the preceding paragraph, the member or the electronic payment instruments and cryptoasset intermediary service provider must not refuse this without reasonable grounds.

A certified association for payment service providers must make applications referred to in paragraph (1), circumstances pertaining to the complaints, and the outcome of any resolution known to the members or electronic payment instruments and cryptoasset intermediary service providers.

When a member obtains information about conduct in which an issuer of prepaid payment instruments, funds transfer service provider, electronic payment instruments service provider, cryptoasset exchange service provider or electronic payment instruments and cryptoasset intermediary service provider engages that weakens the protection of users and other information necessary for the protection of the interests of users as specified by Cabinet Office Order, it must report this to the certified association for payment service providers of which membership they hold.

The Prime Minister may, in response to a request from a certified association for payment service providers and to the extent necessary for ensuring the operations of certified businesses in a proper and steady manner by the certified association for payment service providers, provide the certified association for payment service providers with information pertaining to an issuer of prepaid payment instruments, funds transfer service providers, electronic payment instruments service providers, cryptoasset exchange service providers or electronic payment instruments and cryptoasset intermediary service providers that contributes to the certified businesses as specified by Cabinet Office Order.

as a result of opinions heard pursuant to the provisions of the following paragraph, the ratio of funds transfer service providers, etc. (meaning funds transfer service providers, or electronic payment instruments service providers or cryptoasset exchange service providers; hereinafter the same applies in this Chapter) who filed an objection (limited to the one to which reasonable grounds are provided) to particulars concerning the cancellation of the basic contract for execution of procedures (meaning a contract that governs the provision of the dispute resolution services; hereinafter the same applies in this Chapter) and other terms and conditions for the basic contract for execution of procedures (excluding particulars listed in items of Article 52-67, paragraph (2) of the Banking Act as applied mutatis mutandis pursuant to Article 101, paragraph (1) following the deemed replacement of terms) and other details of the Operational Rulesoperational rules (excluding particulars that must be included in the details of the Operational Rulesoperational rules pursuant to the provisions of Article 52-67, paragraph (3) of that Act as applied mutatis mutandis pursuant to Article 101, paragraph (1) following the deemed replacement of terms and particulars necessary for satisfying the criteria listed in the items of Article 52-67, paragraph (4) of that Act and paragraph (5), item (i) of that Article as applied mutatis mutandis pursuant to Article 101, paragraph (1) following the deemed replacement of terms) to the total number of funds transfer service providers, etc. was not more than a ratio specified by Cabinet Order.

Inspection officials who conduct on-site inspections pursuant to the provisions of Article 24, paragraph (1) or (2), Article 54, paragraph (1) or (2), Article 62-20, paragraph (1) or (2), Article 63-15, paragraph (1) or (2), Article 63-22-1863-18, paragraph (1) or (2), Article 63-35, paragraph (1) or (2), Article 80, paragraph (1) or (2), or Article 95 must carry an identification and present it when requested by any person concerned.

When the Minister of Finance finds it necessary for planning or implementing a plan for systems pertaining to an issuer of prepaid payment instruments, funds transfer service providers, electronic payment instruments service providers, cryptoasset exchange service providers, electronic payment instruments and cryptoasset intermediary service providers, funds transfer transaction analysis service providers (excluding the person engaging in the act set forth in Article 2, paragraph (2117), item (i) in the course of trade; the same applies in the following paragraph) or clearing institution for interbank funds transfers, in relation to a system for failure resolution of financial institutions and financial risk management under the minister's jurisdiction, the minister may request the Prime Minister to provide necessary materials and explanation therefor.

When the Minister of Finance finds it particularly necessary for planning or implementing a plan for systems pertaining to an issuer of prepaid payment instruments, funds transfer service providers, electronic payment instruments service providers, cryptoasset exchange service providers, electronic payment instruments and cryptoasset intermediary service providers, funds transfer transaction analysis service providers or clearing institution for interbank funds transfers, in relation to a system for failure resolution of financial institutions and financial risk management under the minister's jurisdiction, the minister may request an issuer of prepaid payment instruments, funds transfer service providers, electronic payment instruments service providers, cryptoasset exchange service providers, electronic payment instruments and cryptoasset intermediary service providers, funds transfer transaction analysis service providers, clearing institution for interbank funds transfers, certified association for payment service providers, or any other persons concerned to provide materials and explanation therefor as well as other forms of cooperation, to the extent that the cooperation is necessary.

a person has been registered as referred to in Article 7, Article 37, Article 62-3, Article 63-2 or Article 63-22-263-2, or the registration of change referred to in Article 41, paragraph (1), Article 62-7, paragraph (1) or Article 63-22-662-7, paragraph (1) has been registeredmade through wrongful means;

a person provides , in violation of the cryptoasset exchange services without registering the services referred to in Article 63-2provisions of Article 63-7, has another person provide the electronic payment instruments intermediary services;

a person, in violation of the provisions of Article 63-7, has another person provide the cryptoasset exchange services provides funds transfer transaction analysis services without obtaining a license as referred to in Article 63-23;

a person providesobtains a new type of electronic payment instruments and cryptoasset intermediary services without registering the changelicense referred to in Article 63-22-663-23 or Article 63-33, paragraph (1) through wrongful means;

a person, in violation of the provisions of Article 63-22-763-26, has another person provide the electronic payment instruments and cryptoasset intermediaryfunds transfer transaction analysis services;

a person provides a new type of funds transfer transaction analysis services without obtaining a license as referred to in Article 63-2363-33, paragraph (1);

a person obtains provides clearing services for interbank funds transfer without obtaining a license referred to in Article 63-23 or Article 63-3364, paragraph (1) through wrongful means;; or

a person, in violation of the provisions of obtains a license referred to in Article 63-26, has another person provide the funds transfer transaction analysis services;64, paragraph (1) through wrongful means.

a person provides a new type of funds transfer transaction analysis services without obtaining a license as referred to in Article 63-33, paragraph (1);

a person provides clearing services for interbank funds transfer without obtaining a license referred to in Article 64, paragraph (1); or

a person obtains a license referred to in Article 64, paragraph (1) through wrongful means.

a person, in violation of the provisions of Article 63-11, paragraph (1), fails violates an order to manage or entrust users' money separately from its own money, or a person, in violation ofsuspend all or part of the electronic payment instruments intermediary services pursuant to the provisions of the first sentence ofArticle 63-20, paragraph (2) of that Article, fails to manage users' cryptoassets separately from its own cryptoassets1);

a person, in violation of the provisions of the first sentence violates an order to suspend all or part of Article 63-11-2, paragraph (1), failsthe business pursuant to hold performance-guarantee cryptoassets (meaning the performance-guarantee cryptoassets prescribed in thatprovisions of Article 63-37, paragraph; hereinafter the same applies in this item) or fails to manage the performance-guarantee cryptoassets separately from its own cryptoassets other than the performance-guarantee cryptoassets (2);

a person violates an order to suspend all or part of the cryptoasset exchange servicebusiness pursuant to the provisions of Article 63-1782, paragraph (1);2); or

a person violates an order to suspend all or part of the electronic payment instruments and cryptoasset intermediary servicesbusiness pursuant to the provisions of Article 63-22-2096, paragraph (1);2).

a person violates an order to suspend all or part of the business pursuant to the provisions of Article 63-37, paragraph (2);

a person violates an order to suspend all or part of the business pursuant to the provisions of Article 82, paragraph (2); or

a person violates an order to suspend all or part of the business pursuant to the provisions of Article 96, paragraph (2).

a person fails to give a public notice under the provisions of Article 20, paragraph (2), Article 61, paragraph (3), Article 62-25, paragraph (3) or Article 63-2062-25, paragraph (3) or gives a false public notice;

a person fails to prepare or maintain the books and documents under the provisions of Article 52, Article 62-18, Article 63-13, Article 63-22-1663-16 or Article 78, or prepares false books or documents;

a person fails to submit the written reports under the provisions of Article 53, paragraph (1) or (2), Article 62-19, paragraph (1) or (2), Article 63-14, paragraph (1) or (2), Article 63-22-1763-17, Article 63-34 or Article 79 or the accompanying documents under the provisions of Article 53, paragraph (3), Article 62-19, paragraph (3) or (4), Article 63-1462-19, paragraph (3) or (4) or submits false written reports or accompanying documents;

a person fails to submit reports or materials under the provisions of Article 54, paragraph (1) or (2), Article 62-20, paragraph (1) or (2), Article 63-15, paragraph (1) or (2), Article 63-22-1863-18, paragraph (1) or (2), Article 63-35, paragraph (1) or (2) or Article 80, paragraph (1) or (2), or submits false reports or materials;

a person fails to answer or gives a false answer to the questions asked by the officials under the provisions of Article 54, paragraph (1) or (2), Article 62-20, paragraph (1) or (2), Article 63-15, paragraph (1) or (2), Article 63-22-1863-18, paragraph (1) or (2), Article 63-35, paragraph (1) or (2) or Article 80, paragraph (1) or (2), or refuses, prevents or evades the inspection under these provisions;

a person violates the provisions of Article 38 (limited to the part pertaining to item (i)) of the Financial Instruments and Exchange Act as applied mutatis mutandis pursuant to Article 62-17, paragraph (1) or Article 63-22-15, paragraph (1)63-15 (hereinafter referred to as the "Financial Instruments and Exchange Act as applied mutatis mutandis");

a person violates an order under the provisions of Article 62-21-2 or Article 63-16-2;

a person, made false statements in violation of the written application for a license under the provisions of Article 63-9-3 (63-24, paragraph (1) (including as applied mutatis mutandis pursuant to Article 63-22-1563-33, paragraph (2); 3)) or the same applies hereinafter in this item), engages in the act set forth in item (i) of Article 63-9-3;accompanying documents under the provisions of Article 63-24, paragraph (2) (including as applied mutatis mutandis pursuant to Article 63-33, paragraph (3)) and submits those; or

a person made false statements in the written application for a license under the provisions of Article 63-2465, paragraph (1) (including as applied mutatis mutandis pursuant to Article 63-33, paragraph (3)) or the accompanying documents under the provisions of Article 63-24, paragraph (2) (including as applied mutatis mutandis pursuant toof that Article 63-33, paragraph (3)) and submits those; or.

a person made false statements in the written application for license under the provisions of Article 65, paragraph (1) or the accompanying documents under the provisions of paragraph (2) of that Article and submits those.

a person violates the provisions of Article 62-13 or Article 63-22-1363-13.