Japanese

Provisional Translation

[Opening remarks:]

Minister)

I would like to make two remarks at the beginning. ... The second point concerns a request related to real estate transactions using cryptoassets. Specifically, it involves issuing a written request related to such transactions jointly with relevant ministries, including the Ministry of Land, Infrastructure, Transport and Tourism. Real estate transactions conducted using various means of payment, such as cash and cryptoassets, can be exploited for money laundering and may violate the Payment Services Act, depending on how they are carried out. For this reason, the Financial Services Agency (FSA), the Ministry of Finance, the Ministry of Land, Infrastructure, Transport and Tourism, and the National Police Agency issued a written request to real estate agents and Cryptoasset Exchange Service Providers through industry associations today. The request includes measures to understand the actual situation and ensure the soundness of real estate transactions using cryptoassets. These measures include, for example, clarifying that receiving cryptoassets from real estate agents or buyers and paying legal tender to sellers may constitute operating cryptoasset exchange services without registration; ensuring thorough anti-money laundering measures, including the reporting of suspicious transactions; and disseminating information on reporting obligations under the Foreign Exchange and Foreign Trade Act when non-residents acquire real estate. The FSA and Ministry of Finance will continue to respond appropriately, from the perspective of preventing money laundering, in cooperation with relevant ministries and agencies. For further details, please direct your questions to the relevant ministries and agencies.

[Questions and answers:]

Q.

The Nikkei Stock Average closed above the 60,000 mark for the first time yesterday. Some have pointed out that the market is being driven by AI- and semiconductor-related stocks, raising concerns that stock price movements may be diverging from the realities faced by households amid rising prices. At the same time, uncertainties surrounding the situation in the Middle East persist, and risks related to rising interest rates continue to be highlighted. Against this backdrop, could you share your assessment of the current economic sentiment and your views on future economic and fiscal management?

A.

Generally speaking, for stock prices to rise in a sustainable manner, it is important that the government’s economic policies known as Sanaenomics be firmly recognized both domestically and internationally. That said, stock prices are ultimately determined by overall economic conditions and the business activities of individual companies. Given this, and the fact that stock movements vary by company, I am not in a position to comment on specific market developments.