Crypto Asset Exchange Service Provider (CAESP) License in Japan

• Operating a centralised crypto‑asset exchange (order‑book/OMS)

• Brokerage/execution, OTC desk (if within scope)

• Custody of client crypto‑assets with segregation & insurance arrangements

• Fiat on/off‑ramp via partner banks; stablecoin handling subject to rules

• Listing/admission of tokens per JVCEA whitelist & screening policy

• Local corporation with effective management in Japan; fit & proper officers/shareholders

• JVCEA membership & adherence to SRO rulebook; internal controls & audits

• Client asset segregation; majority cold‑wallet storage; key management with multi‑sig/MPC

• Capital & net asset requirements; reserve/compensation arrangements for client assets

• AML/CFT incl. Travel Rule implementation; sanctions screening; blockchain analytics; STRs to JAFIC

• Market integrity & conflict‑of‑interest controls; prohibition/limits on proprietary trading

• IT/cybersecurity, incident reporting, BCP/DR; outsourcing/vendor oversight; penetration tests

• Consumer protection: disclosures, suitability for retail, complaints handling; recordkeeping & retention

Core Japan team (indicative):

• Representative Director/CEO; Compliance Head & MLRO (Japan‑based)

• Risk Manager; Market Surveillance Lead; Internal Audit (independent)

• Operations/Markets Lead; Custody/Wallet Lead

• IT/Security (CISO); DevOps/Infrastructure; QA

• Finance/Accounting; External Auditor; Legal/Company Secretary

• Customer Protection/Complaints Officer

• Matching engine/OMS; APIs (REST/WebSocket/FIX) with pre/post‑trade risk controls

• Wallet & custody stack (HSM/MPC), address whitelisting, withdrawal controls & travel‑rule gateway

• KYC/AML platform; sanctions/PEP screening; blockchain analytics & case management

• Market data & surveillance tools; token screening/whitelist workflow

• Regulatory reporting dashboards; incident/complaints registers; audit trails

Domestic authorisation; international access limited by target jurisdictions’ rules and partnerships.

• Corporate tax: national 23.2% headline + local enterprise taxes (effective rates commonly ~30% depending on prefecture).

• Consumption tax (VAT‑like): 10% standard; many exchange/custody services may be out of scope/exempt depending on treatment.

• Payroll and withholding taxes per Japanese law.

• Operational bank accounts with Japanese banks; trust/safeguarding accounts for client fiat.

• Client crypto custody: own custody with strict controls/insurance or qualified third‑party custodian.