Japan Compliance
Introduction
Chain-Fi operates within Japan as a security + identity layer that provides non-custodial Web3 security infrastructure. This page explains how Chain-Fi complies with Japan regulatory requirements.
What Chain-Fi Is NOT
Chain-Fi does NOT:
- Custody funds
- Store private keys
- Transmit virtual assets
- Execute transactions
- Mediate payments
- Act as an exchange
- Act as a broker
- Fall under custodial wallet rules
- Qualify as a money transmitter
- Process fiat payments
- Take control of user funds
This protects Chain-Fi from being misclassified under Japan regulatory regimes.
Applicable Regulations
| Regulation | Applies? | Explanation | Details |
|---|---|---|---|
| Payment Services Act | ⚠ Partial | Does NOT apply as payment service provider | We do NOT initiate payments, process payment transactions, or provide payment services (see "What Chain-Fi Is NOT" above). Payment Services Act licensing requirements do not apply to our non-custodial infrastructure services. |
| FSA Virtual Currency Regulations | ⚠ Partial | Does NOT apply as virtual currency exchange | We do NOT custody virtual currencies, store private keys, or operate as a virtual currency exchange service (see "What Chain-Fi Is NOT" above). Our non-custodial vaults and identity services fall outside FSA virtual currency exchange service definitions. However, we may assist virtual currency exchange service providers with compliance tools. |
| APPI | ✔ | Personal information protection compliance | We implement APPI-compliant measures including purpose specification, consent management, data security measures, data breach notification, and data subject rights. See Data Protection & Privacy. |
| AML/CFT Regulations | ✔ | Customer due diligence and monitoring | We implement AML/CFT-compatible controls including customer identification, transaction monitoring, and suspicious activity reporting. See VAT & AML. |
Regulatory Position
Chain-Fi's non-custodial architecture means:
- FSA Registration: Evaluating virtual currency exchange service registration requirements
- APPI Compliance: Full compliance with Japan data protection laws
- AML/CFT Obligations: Customer due diligence and transaction monitoring
- Payment Services: Assessing applicability of Payment Services Act
Compliance Framework
FSA Requirements
- Virtual currency exchange service classification
- Registration requirements (if applicable)
- Operational compliance
- Regulatory reporting
APPI Compliance
- Purpose specification
- Consent management
- Data security measures
- Data breach notification
- Data subject rights
AML/CFT Compliance
- Customer identification and verification
- Enhanced due diligence for high-risk customers
- Suspicious transaction reporting
- Record-keeping requirements
Ongoing Compliance
We continuously monitor:
- FSA regulatory guidance
- Personal Information Protection Commission updates
- AML/CFT policy developments
- Industry best practices
Contact
For questions about Chain-Fi's Japan compliance posture, please contact our compliance team.
