Updated Page: Beware Unregistered Firms
Overview
Anyone conducting financial instruments business or crypto-asset exchange services for residents of Japan must be registered under applicable laws. Trading with unregistered firms makes it impossible to verify investor protection measures, and problems such as refused withdrawals and loss of contact have been reported. The notice urges readers to check the Financial Services Agency’s list and search tool for registered firms, review published warnings, and carefully consider the terms of any transaction. It also provides contact points for consultations and reports when concerns or problems arise.
Key points
- Anyone conducting financial instruments business or crypto-asset exchange services for residents of Japan must be registered.
- Before trading, check registration status, whether any warnings have been issued, and the terms of the transaction.
- Concerns or problems can be referred to the Financial Services Agency’s consultation office or the Securities and Exchange Surveillance Commission.
Overview
Anyone conducting financial instruments business or crypto-asset exchange services for residents of Japan, including stock trading, FX trading, and crypto-asset trading, must register under Japanese law.
Registration requires measures to protect investors and others, including prohibitions on false representations and exaggerated advertising, separate management of customer assets, a contact point for problems, and controls to support safe system operation.
Impact
For unregistered firms, the authorities cannot verify their investor protection measures, and such firms are considered likely to lack systems equivalent to those of registered firms. Many reports describe problems such as refused withdrawals of deposited funds, demands for excessive withdrawal fees, and sudden loss of contact.
Details
Conducting financial instruments business or crypto-asset exchange services in Japan without registration is illegal. The Financial Services Agency publishes a list of registered firms, and its comprehensive financial services search tool allows searches by name, telephone number, and other details. It also publishes information when warning letters are issued to persons conducting business without registration, including information on financial instruments firms and crypto-asset exchange service providers. The agency calls on readers to check registration status, any warnings, and the terms of transactions carefully before trading.
For concerns or problems, contact the Financial Services Agency’s Financial Services User Consultation Office. Its consultation line for suspicious investments accepts calls on weekdays from 10:00 to 17:00, and its website accepts inquiries 24 hours a day. The telephone number is 0570-050588, or 03-6206-6066 for IP phones. Information about FX trading, funds, and other matters can also be submitted to the Securities and Exchange Surveillance Commission. Its telephone number is 0570-00-3581, or 03-3581-9909 for IP phones.