Here’s the rewritten article in markdown format:

Japan Amends Payment Services Act to Regulate Virtual Currencies and Prepaid Cards

The Japanese government has introduced amendments to the Payment Services Act, aiming to regulate virtual currency exchange services, provide protections for customers of such exchanges, and address issues related to money laundering and terrorist funding.

Key Provisions

• Definition of Virtual Currency: The amended act introduces a new definition of “virtual currency,” which includes criteria such as:
  • Being used for payment or exchange
  • Having asset value
  • Being recorded electronically
  • Not being a Currency Denominated Asset
  • Being transferred electronically
• Registration Requirements: Anyone providing virtual currency exchange services must meet certain registration requirements, including:
  • Being a stock company (kabushiki kaisha) or foreign company operating as the equivalent
  • Having a specified asset base
  • Having an internal organization sufficient for pursuing its business appropriately

Obligations of Virtual Currency Exchange Services

• Complaints Handling Systems: Providers of virtual currency exchange services must set up complaints handling systems to address customer concerns.
• Information Disclosure: They are required to provide information about prepaid payment instruments on the internet.
• Public Notice: When discontinuing a prepaid payment instrument, they must give public notice electronically.

Electronic Monetary Claims

The amendments also facilitate the transfer of electronic monetary claims between institutions, enhancing convenience and making electronic monetary claims more useful for financial transactions.

Authors

This article is written by Yuri Suzuki, a partner at Atsumi & Sakai, and Ryosuke Oue, a member of the fintech team at Atsumi & Sakai.