Получение лицензии на обмен криптовалют в Японии

Japanese legislation on payment services was significantly modified. Since April 2017 amendments to the financial legislation of the country entered into force. Issue concerning exchange of cryptocurrency to traditional settlement funds was regulated for the first time ever. Persons intending to provide such services are obliged to obtain the license for exchange of cryptocurrencies.

Let’s consider certain requirements set by the Japan regulatory body to potential candidates to obtain the license for exchanging operations with cryptocurrencies.

What are the requirements to the company?

  1. Organizational and legal form. There are two situations to consider in context of this point.
    • Resident of Japan wants to register the company. In this case it is necessary to register the entity with the organizational and legal form of joint-stock company. Availability of the registered office in Japan is also required.
    • Non-resident of Japan wants to register the company. In this case it is necessary to register the branch of foreign company. In the same way, the registered office in Japan is required.
  2. Authorized capital. Minimum amount of authorized capital is equal to 10 million Japanese yen, which are approximately equal to 90 thousand US dollars.
  3. Personnel. It is mandatory to include to the company staff employees responsible for the financial part of the company operations. The staff also should include at least one resident of Japan as a director. In addition, it is necessary for the company to use professional services of the person or entity, which are related to verifying compliance of the company activity with Japanese legislation.  

License for cryptocurrency exchange in Japan  - required documents

Japanese legislation requires to prepare the significant documentation package to obtain license for exchange of cryptocurrency in Japan. In particular, the regulatory body should be provided with the following:

  1. Reliance letter including information that the license applicant does not have any backgrounds for refusal to consider the application regarding crypto licenses;
  2. Certificate on incorporation of the company;
  3. Incorporation documents of the company;
  4. List of shareholders of the company;
  5. Documents describing structure of the company;
  6. Balance sheet of the company (if available);
  7. Forecast of profit and loss for the first three years from the moment of incorporation of the company;
  8. Internal rules of the company to regulate the activity in the area of exchanging operations with cryptocurrencies (in general, they will include approximately 20 internal instructions and provisions);
  9. Forecast of profit and loss for the first three years from company incorporation;
  10. Templates of contracts that will be concluded to perform in the area related to exchange of cryptocurrencies;
  11. Profile of the director;
  12. Document confirming the fact that there is no guardship over directors and bankruptcy that could be lead in relation to the director;
  13. Certificate of residence of the director;
  14. Profiles of persons responsible for operating the activity in the area related to the exchange of cryptocurrencies (chiefs /responsible employees of relevant departments)
  15. Description of cryptocurrencies, which the company will deal with during its activity;
  16. Other documents.

How long does it take to obtain the license for the cryptocurrency exchange?

The procedure of filing documents to the Japanese regulatory body takes approximately 3-4 months. It includes collection and obtaining necessary documentation, negotiation with regulatory body, as well as procedure of filing documents itself. Waiting for the answer takes 1-2 months.

Which requirements should be met in daily activity of the company?

Points hereinabove were related directly to the licensing of cryptocurrency exchange in Japan. However, individuals and legal entities that represent such services must comply with the following additional requirements:

  1. Division of assets of the company and clients;
  2. Conducting an annual audit;
  3. Implementation of the client identification procedure;
  4. Observance of requirements prescribed by law related to personal data protection.

With our company licensing the activity of cryptocurrency exchange will pass with minimal cost and within reasonable period of time.