Japanese Payment Services Act BSP

(translated) (Act. No. 59 - June 2009)

Virtual Currency In Japanese, the phrase 仮想通貨 (“virtual
currency”) is used.

The term "Virtual Currency" as used in this

Act means any of the following:

(i) property value (limited to that which is

recorded on an electronic device or any
other object by electronic means, and
excluding the Japanese currency,
foreign currencies, and Currency-
Denominated Assets; the same applies in
the following item) which can be used in
relation to unspecified persons for the
purpose of paying consideration for the
purchase or leasing of goods or the receipt
of provision of services and can also be
purchased from and sold
 to unspecified
persons acting as counterparties, and which
can be transferred by means of an
electronic data processing system; and

(ii) property value which can be mutually

exchanged with what is set forth in the
preceding item with unspecified persons
acting as counterparties, and which can be
transferred by means of an electronic data
 processing system.

Virtual Currency Exchange The term "Virtual Currency Exchange

Service Service" as used in this Act means carrying
out any of the following acts in the course of
trade, and the term "Exchange of Virtual
Currency, etc." as used in this Act means
the acts set forth in items (i) and (ii):
(i) purchase and sale of a Virtual Currency
or exchange with another Virtual Currency;
(ii) intermediary, brokerage or agency
services for the act set forth in the
preceding item; and
(iii) management of users' money or Virtual
Currency, carried out by persons in
connection with their acts set forth in the
preceding two items.

Registration Article 63-2

No person may engage in the Virtual
Currency Exchange Service
unless the person is registered with the
Prime Minister.

After the amended Payment Services Act

took effect on April 1, 2017, only business
operators registered with competent Local
Finance Bureau are allowed to operate
 virtual
currency exchange service (i.e. introduced
registration system).1

Security Article 63-8

A Virtual Currency Exchange Service
Provider must, pursuant to
the provisions of Cabinet Office Order, take
necessary measures for preventing
leakage, loss, or damage of information
pertaining to the Virtual Currency Exchange
Service and otherwise ensuring safe control
of the handling of that information.

Article 63-16
When the Prime Minister finds it necessary
for the proper and
secure conduct of the Virtual Currency
Exchange Service, the Prime Minister may
order a Virtual Currency Exchange 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, to
the extent that the order is necessary.

Reporting Written annual report

1 https://www.fsa.go.jp/en/news/2017/20170930-1/02.pdf
 Volume of users’ VC
Audit Report
Onsite inspection Allowed if PM finds it necessary (63-15)
Penalties Revocation of registration
Suspension of service

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