Starting from April 1st 2017, amended Payment Services Act will be enforced.
While all exchanges in Japan must comply with the law to continue their operation, exchanges based outside of Japan need to be careful when conducting business in Japan as well.
According to the previously announced FSA public comment foreign exchanges can continue their business under certain conditions.
Comment No. 102
Foreign exchanges acting as liquidity provider can continue to do business with exchanges in Japan even after the new law enforcement.
Comment No. 131
Foreign exchanges are prohibited from soliciting new customers living in Japan to their trading platform.
Overall, foreign exchanges can continue business in Japan unless exchanges actively solicit new customers living in Japan to their trading platform.
We hope this blog help foreign exchanges make a business decision when operating a business in Japan.
FSA public comment