Japan Financial Regulation

Secondary transactions in private company shares: what changed in Japan, and what it means for founders

Smartround Securities has completed registration as a Type I financial instruments business, clearing the way to handle secondary transactions in private company shares. Here is what a secondary transaction actually is, why the market never developed in Japan, what the 2024 amendment to the Financial Instruments and Exchange Act changed, and what founders should decide before the first request lands on their desk.