The regulation about virtual exchange business

Any of the following activities carries out as a business

Ⅰ.sale/purchase of VCs or exchange for other VCs

Ⅱ.intermediary,agency or brokerage activities for Ⅰ

Ⅲ.management of users’ money or VCs in conjunction with Ⅰ and Ⅱ

Registration

(1)Registration required for VC exchanges

(2)Registration required for other intermediary activities Service providers being outsourced from registered service provider do not need registration

(3)Registration required for management of funds or VCs in conjunction with (1)or(2) Registration not required for a mere wallet provider because it does not provide wallet in connection with VC trading/intermediary activities

3 ways to sell out ICO coins in Japan

1. Get registered as VC Exchange Business Operator registration and sell tokens by itself (takes around 6 months to get registered)

2. Delegate sales of ICO coins to a third party registered VC Exchange Business Operator

3. Not to sell ICO coins to Japanese residents

Key sources

• SESC website
• Inquiries directed to the SESC
• securitytokenacademy
• ICO under Japanese law