meta_id 3280922

Japan: Japan Cryptocurrency Exchange Association Publishes Public Comment Results on Articles of Incorporation and Self-Regulatory Rules On June 30, 2026, the Japan Cryptocurrency Exchange Association (JVCEA) published the results of its consultation on the enactment and amendment of its Articles of Incorporation and self-regulatory rules and guidelines. The consultation ran from May 26, 2026 to June 11, 2026, and the Association received a total of 16 comments from three companies. The relevant rules and guidelines were established or partially amended on June 15, 2026, and take effect following the Association's regular general meeting of shareholders on June 30, 2026. Key points raised by commentators and the Association's responses include: Advance collection of funds for electronic payment instruments: A request to clarify whether funds deposited "by the time the order is executed" can be treated as advance collection, consistent with current exchange practice, rather than requiring receipt strictly "at the time of execution," along with a request for a six-to-twelve-month system transition period. The Association noted this falls outside the scope of the current amendment and will be considered for future amendments. Purchase measures for foreign electronic payment instruments exceeding 1 million yen: A request for clearer, standardised criteria for triggering mandatory purchase measures where a user's holdings of foreign electronic payment instruments exceed 1 million yen, to reduce inconsistency across member firms. The Association deferred this to future amendments. Voluntary reporting under the Code of Ethics: A request to clarify the scope of "matters subject to voluntary reporting," given the subjectivity of the current standard. The Association deferred this to future deliberations. Reporting deadline for serious issues by intermediaries: A request to replace the current two-week reporting deadline with a two-stage process, allowing a preliminary report within two weeks followed by a more detailed report. The Association declined to amend the draft, noting that the necessary level of detail and any additional reporting should be assessed case-by-case, consistent with reporting obligations under Article 64 of the relevant Cabinet Office Ordinance. Scope of solicitation-related prohibitions in crypto-asset brokerage rules: The Association confirmed that whether an activity constitutes "solicitation" must be assessed case-by-case based on its substance, and added clarifying wording to Article 9, Paragraph 4, Item 6 of the Rules and Guidelines Concerning Crypto-Asset Brokerage Activities to confirm that the provision does not apply where, based on a business member's business model, the activity is not assessed as solicitation. Outsourcing of brokerage business: The Association confirmed that partial outsourcing of crypto-asset brokerage operations is permitted under the Payment Services Act, provided it does not contravene the prohibition on lending one's name, and that outsourcing the preparation and retention of books and records to an affiliated exchange operator is permissible provided the intermediary retains access at any time and ensures the accuracy, completeness, and appropriate management of those records. Scope of outsourcing rules: The Association confirmed that the Rules and Guidelines Concerning the Outsourcing of Crypto-Asset Brokerage Activities apply only to activities constituting crypto-asset brokerage business, and do not extend to activities such as customer introduction that do not result in a brokerage transaction. Advertising oversight for outsourced intermediary functions: The Association confirmed that affiliated crypto-asset exchange operators must review advertising content placed by intermediaries in advance, including content placed by third parties to whom the intermediary has outsourced advertising functions, and that intermediaries remain responsible for ensuring third-party contractors can respond to Association requests. Cover transactions and inter-company transfer limits: A request to exempt cover transactions between exchange operators and transactions with liquidity providers from the 1 million yen transfer limit, subject to appropriate risk management systems. The Association deferred this to future amendments. Disclosure of hedging counterparties in OTC transactions: A request to clarify whether disclosure of major hedging counterparties under Article 22 requires specific company names or a general overview of counterparty numbers, regions, and business types, given potential conflicts with NDA clauses in liquidity provider agreements. The Association deferred this to future amendments. Calculation of maintenance limits: A request for specific guidance on calculating the new "maintenance limit" concept, including valuation methodology and treatment of derivative positions such as CFDs. The Association deferred this to future amendments, to be addressed in separate guidance. Several minor drafting corrections were also accepted, including formatting errors in the Articles of Incorporation and clarifying wording in the Rules and Guidelines Concerning Crypto-Asset Intermediary Activities.