Unlicensed Investment Advice Is a Crime

The Conclusion

The people who post "today's entry plan", "this ticker is going to run", or "buy at X, sell at Y" on X, YouTube, and LINE — without registration — are violating the Financial Instruments and Exchange Act (FIEA) of Japan, Articles 29 and 63.

This article explains what is illegal, who is in scope, how to verify, and how to report.

I. Legal Basis

FIEA Article 29

No person shall engage in a Financial Instruments Business unless registered with the Prime Minister.

The "Financial Instruments Business" includes four types:

Definition of Investment Advisory (FIEA Art. 2(8)(11))

An activity is "investment advisory" when all of the following are true:

1. For compensation (cash, subscription, referral commission, etc.)
2. About the value or judgment of securities/derivatives
3. The advice is given to a counterparty

Penalty (FIEA Art. 197-2(10-4))

Imprisonment up to five years and/or a fine up to ¥5 million. Corporate penalty: fine up to ¥500 million.

II. Where the Line Is

Illegal if done without registration

• "Buy ticker XYZ at 3,000, sell at 3,500"
• "Long USDJPY at 150.30, stop at 148.50"
• A LINE group charging monthly fees to broadcast entry signals
• A YouTube members-only stream listing today's must-buy tickers
• A paid note publishing this week's trade plan
• A Discord salon broadcasting live FX signals

Generally permissible

• General market commentary
• Educational analysis of historical patterns
• News and macro data interpretation
• Disclosing one's own positions as a fact, without urging others to copy

The dividing line: specific security + specific judgment + compensation + delivery to others.

III. How to Verify Registration

The Japan Financial Services Agency (FSA) publishes the "Registry of Financial Instruments Business Operators".

1. Search: "金融庁 金融商品取引業者登録一覧"
2. Download the Excel/PDF
3. Open the "Investment Advisory & Agency" sheet
4. Search for the operator name or representative name

If the name is not on the list, they are unlicensed.

The FSA also publishes a separate list of "Persons engaging in unregistered FIB activity". If a name appears there, do not engage under any circumstance.

IV. Why Unlicensed Operators Stay Unlicensed

Registration requires:

• Corporate structure (株式会社 etc.)
• Minimum capital: ¥5,000,000
• Operating bond deposit: ¥5,000,000
• Background checks for major shareholders and officers
• Compliance officer and internal control system
• Books, records, and inspection acceptance

In short, casual ticker broadcasting is structurally not permitted. Those competent and willing to register, do. Those who do not register, either cannot or will not.

V. How to Report

1. FSA Financial Services User Counseling Office

• Phone: 0570-016811 (weekdays 10:00–17:00)
• Provide operator name, URL, screenshots, contracts

2. Securities and Exchange Surveillance Commission

• Web: search "証券取引等監視委員会 情報提供"
• Anonymous reports accepted

3. Police

• Criminal fraud (Penal Code Art. 246)
• Contact the local precinct's economic crimes division

4. National Consumer Affairs Center

• Consumer Hotline: 188
• Connects to your nearest local consumer center

VI. The "Salon" Loophole That Isn't

The standard structure is:

1. Free content on X/YouTube to harvest attention
2. Funnel to a LINE official account ("free seminar")
3. Recruit into an online salon (¥3,000–30,000/month)
4. Inside the salon, broadcast specific buy/sell signals

The moment fees + specific signals coexist, this is highly likely to be unlicensed investment advisory.

Typical legal-shield language used by operators:

• "This is educational content"
• "Trading at your own risk"
• "Just my own predictions"

None of these have legal effect. If the substance is paid advisory, it is a crime.

Summary

Roughly 99% of "entry plan" broadcasters on X / YouTube / LINE are unlicensed. If you trade on their information, you are paying a criminal.

Know the law. Check the registry. Then decide whether to engage.