2524 E-Commerce and Dispute Resolution documents concerning compromise and reconcili- ation made through proper out-of-court settlement procedures. REFERENCES Boele-Woelki, K., & Kessedjian, C. (Eds.). (1998). Internet: Which court decides? Which law ap- plies? Kluwer. ADDITIONAL READING Basedow, J. (2000). The effects of globalization on private international law. In Basedow & Kono (Eds.), /HJDODVSHFWVRIJOREDOL]DWLRQ²&RQÀLFW of laws, Internet, capital markets and insolvency in a global economy. Kluwer Beatty, M. (1999). Litigation in cyberspace: The current and future state of Internet jurisdiction. University of Baltimore Intellectual Property Law Journal, 7, 127. Bogdan, M. (2006). Concise introduction to EU private international law. Europa Law Publish- ing. Chen, X. (2004). United States and European Union approaches to Internet jurisdiction and their impact on e-commerce. University of Penn- sylvania Journal of International Economic Law, 25, 423. Chik, W. (2002). U.S. jurisdictional rules of adjudication over business conducted via the In- ternet—Guidelines and a checklist for the e-com- merce merchant. Tulane Journal of International and Comparative Law, 10, 243. Geist, M. (2000). E-commerce jurisdiction: the Canadian approach. Journal of Internet Law, 4,9. Gillies, L. (2006). The new legal framework for e-commerce in Europe. European Law Review, 31, 774. H u n t l e y, A . ( 2 0 0 5 ) . C o n t r a c t l a w i n a n e - c o m m e r c e age. International Journal of Law & Information Technology, 13, 291. Jennings, M. (2005). Finding legal certainty for e-commerce: Traditional personal jurisdiction analysis and the scope of the zippo sliding scale. Washburn Law Journal, 44, 381. Jezairian, S. (2000). Lost in the virtual mall: Is traditional personal jurisdiction analysis ap- plicable to e-commerce cases? Arizona Law Review, 42, 965. Katsh, E., et al. (2000). E-commerce, e-disputes, DQGHGLVSXWHUHVROXWLRQ,QWKHVKDGRZRI³H%D\ Law.” Ohio State Journal on Dispute Resolution, 15(3), 705. Kightlinger, M. (2003). A solution to the Yahoo! problem? The EC e-commerce directive as a model for international cooperation on Internet choice of law. Michigan Journal of International Law, 24, 719. Nimmer, R. (2001). Principles of contract law in electronic commerce. In Fletcher, Mistelis, & Cremona (Eds.), Foundation and perspectives of international trade law. Sweet & Maxwell. Pappas, C. (2002). Comparative U.S. and EU ap- proaches to e-commerce regulation: Jurisdiction, electronic contracts, electronic signatures and taxation. Denver Journal of International Law and Policy, 31, 325. Stone, P. (2006). EU private international law: harmonisation of laws. Elgar European Law. Takahashi, K. (2006). A major reform of Japanese private international law. Journal of Private In- ternational Law, 2(2), 2525 E-Commerce and Dispute Resolution 6\PSRVLXP&XUUHQWGHEDWHVLQWKHFRQÀLFWRI laws: Choice of law and jurisdiction on the In- ternet: Choice of law for Internet transactions: The uneasy case for online consumer protection. (2005). University of Pennsylvania Law Review, 153, 1883. Symposium on approaching e-commerce through uniform legislation: Understanding the Uniform Computer Information Transactions Act and the Uniform Electronic Transactions Act. (2000). Duquesne Law Review, 38, 205. ENDNOTES 1 7KHZRUGVRIFRQÀLFWRIODZVFRQÀLFWV law, or private international law are used as interchangeable terms in this chapter. 2 See generally, K. Boele-Woelki and C. Kes- sedjian ed., Internet: Which Court Decides? Which Law Applies? (Kluwer, 1998). Ac- FRUGLQJWRWKH³,QWURGXFWLRQ´RIWKLVERRN ³>W@KH PDLQ TXHVWLRQ LV ZKHWKHU WKH FKDO- lenges created by the global information UHYROXWLRQWRWKHFRQÀLFWVODZ\HUDUHPDWWHUV of substance or only matters of degree.” 3 In case of computer information transac- tions like this hypothesis, the object of the contract is software that is not goods in a strict sense. One could regard this contract as a sale contract, and the others as a license contract. 4 Supreme Court Judgment of Nov. 28, 1975, Minshu Vol. 29, No. 10, p.1554. 5 Supreme Court Judgments of Oct. 16 , 1981, Minshu Vol. 35, No, 7, p. 1224 and especially of Nov. 11, 1997, Minshu Vol. 51, No. 10, p. 4055. 6 Article 4 of the Code of Civil Procedure. 7 Articles 5 of the Code of Civil Procedure. 8 Article 8 (1) of the Act of the Application of Laws. 9 Article 8 (2) of the Act of the Application of Laws. 10 Nevertheless, some academics, including this author, strongly insist that certain QRQVWDWH OHJDO QRUPV KDYH TXDOL¿FDWLRQV to be applied directly as the applicable law through Japanese Private International Law rules. These norms include at least the Unidroit Principles, the 1980 UN Conven- tion on Contracts for the International Sale of Goods that is not entered into force in Japan, the Uniform Customs and Practice for Documentary Credits, and so forth, in the author’s view. See, 1994 Inter-American Convention on the Law Applicable to In- ternational Contracts (Mexico Convention) adopted by the Organization of American States. The Proposed Rome I Regulation also has a similar provision. COM (2005) ¿QDO 11 OJ 16. 1. 2001, L 12/1. The Brussels I Regu- lation modernizes and replaces the 1968 Brussels Convention on the same matters. The Brussels Convention continues to apply i n r e l a t i o n t o D e n m a r k , t o w h i c h t h e B r u s s e l s I Regulation does not apply. See Article 1 (3) of the Regulation. 12 Article 4 (1) of the Regulation. 13 3DUDJUDSKRI$UWLFOHUHDGV³$SHUVRQ domiciled in a Member State may, in another Member State, be sued: 1. (a) In matters relating to a contract, in the courts for the place of performance of the obligation in question; (b) For the purpose of this provision and unless otherwise agreed, the place of performance of the obligation in question shall be: - In the case of the sale of goods, the place in a Member State where, under the contract, the goods were delivered or should have been delivered, 2526 E-Commerce and Dispute Resolution - In the case of the provision of services, the place in a Member State where, under the contract, the services were provided or should have been provided, (c) if subparagraph (b) does not apply then subparagraph (a) applies.” 14 Paragraphs 1 and 2 of Article 23 state as follows: ³,IWKHSDUWLHVRQHRUPRUHRIZKRP is domiciled in a Member State, have agreed that a court or the courts of a Member State are to have jurisdiction to settle any disputes which have arisen or which may arise in connection with a particular legal relationship, that court or those courts shall have jurisdiction. Such jurisdiction shall be exclusive unless the parties have agreed other- wise. Such an agreement conferring jurisdiction shall be either: a. In writing or evidenced in writ - ing b. In a form which accords with practices which the parties have established between themselves c. In international trade or com - merce, in a form which accords with a usage of which the parties are or ought to have been aware and which in such trade or com- merce is widely known to, and regularly observed by, parties to contracts of the type involved in the particular trade or commerce concerned. 2. Any communication by electronic means which provides a durable record of the agreement shall be equivalent WR³ZULWLQJ´ 15 The most recent consolidated text of the Convention is found in OJ 30.12.2005 C 334 p.1. 16 3DUDJUDSKRI$UWLFOHUHDGV³$FRQWUDFW shall be governed by the law chosen by the parties. The choice must be expressed or demonstrated with reasonable certainty by the terms of the contract or the circumstances of the case. By their choice the parties can select the law applicable to the whole or a part only of the contract.” 17 Paragraphs 1 and 2 of Article 4 state as fol- lows: ³7RWKHH[WHQWWKDWWKHODZDSSOLFDEOH to the contract has not been chosen in accordance with Article 3, the contract shall be governed by the law of the country with which it is most closely connected. Nevertheless, a separable part of the contract which has a closer connection with another country may by way of exception be governed by the law of that other country. 2. Subject to the provisions of paragraph 5 o f t h i s A r t i c l e , i t s h a l l b e p r e s u m e d t h a t the contract is most closely connected with the country where the party who is to effect the performance which is c h a r a c t e r i s t i c of t h e c o n t r a c t h a s , a t t h e time of conclusion of the contract, his habitual residence, or, in the case of a body corporate or unincorporate, its central administration. However, if the contract is entered into in the course of that party’s trade or profession, that country shall be the country in which the principal place of business is situated or, where under the terms of the contract the performance is to be effected through a place of business other than the principal place of busi- ness, the country in which that other place of business is situated.” 18 See Chapter 3 of the Regulation. 19 6HFWLRQWLWOHG³&2175$&78$/ CHOICE OF FORUM” reads: 2527 E-Commerce and Dispute Resolution D ³7KHSDUWLHVLQWKHLUDJUHHPHQWPD\ choose an exclusive judicial forum unless the choice is unreasonable and unjust. b. A judicial forum specified in an agreement is not exclusive unless the agreement expressly so provides.” 20 6HFWLRQWLWOHG³&+2,&(2)/$:´ reads: D ³7KHSDUWLHVLQWKHLUDJUHHPHQWPD\ choose the applicable law. However, the choice is not enforceable in a con- sumer contract to the extent it would vary a rule that may not be varied by agreement under the law of the juris- diction whose law would apply under subsections (b) and (c) in the absence of the agreement. b. In the absence of an enforceable agree - ment on choice of law, the following rules determine which jurisdiction’s law governs in all respects for purposes of contract law: 1. An access contract or a contract providing for electronic delivery of a copy is governed by the law of the jurisdiction in which the licensor was located when the agreement was entered into. 2. A consumer contract that requires delivery of a copy on a tangible m e d i u m i s g o ve r n e d b y t h e l a w o f the jurisdiction in which the copy is or should have been delivered to the consumer. 3. In all other cases, the contract is governed by the law of the jurisdiction having the most VLJQL¿FDQWUHODWLRQVKLSWRWKH transaction. c. In cases governed by subsection (b), if the jurisdiction whose law governs is outside the United States, the law of that jurisdiction gover ns only if it pro- vides substantially similar protections and rights to a party not located in that jurisdiction as are provided under this [Act]. Otherwise, the law of the State WKDWKDVWKHPRVWVLJQL¿FDQWUHODWLRQ- ship to the transaction governs. d. For purposes of this section, a party is located at its place of business if it has one place of business, at its chief H[HFXWLYH RI¿FH LI LW KDV PRUH WKDQ one place of business, or at its place of incorporation or primary registration if it does not have a physical place of business. Otherwise, a party is located at its primary residence.” 21 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards of June 10, 1958. 22 As to the theory of special circumstances, see above II 1 (1). 23 Article 15 reads: ³,QPDWWHUVUHODWLQJWRDFRQWUDFWFRQ - cluded by a person, the consumer, for a purpose which can be regarded as being outside his trade or profession, j u r i s d i c t i o n s h a l l b e d e t e r m i n e d b y t h i s Section, without prejudice to Article 4 and point 5 of Article 5, if: a . I t i s a c o n t r a c t f o r t h e s a l e o f g o o d s on installment credit terms; or b. It is a contract for a loan repayable by installments, or for any other IRUPRIFUHGLWPDGHWR¿QDQFH the sale of goods; or c. In all other cases, the contract has been concluded with a per- son who pursues commercial or professional activities in the Member State of the consumer’s domicile or, by any means, directs such activities to that Member State or to several States 2528 E-Commerce and Dispute Resolution including that Member State, and the contract falls within the scope of such activities. 2. Where a consumer enters into a con - tract with a party who is not domiciled in the Member State but has a branch, agency or other establishment in one of the Member States, that party shall, in disputes arising out of the operations of the branch, agency or establish- ment, be deemed to be domiciled in that State. 3. This Section shall not apply to a con - tract of transport other than a contract which, for an inclusive price, provides for a combination of travel and accom- modation.” 24 See especially, Paragraph 1(c) of Article 15. 25 3DUDJUDSK RI $UWLFOH WLWOHG ³&HUWDLQ consumer contracts” states as follows; 1. This Article applies to a contract the o b j e c t o f w h i c h i s t h e s u p p l y o f g o o d s o r VHUYLFHVWRDSHUVRQ³WKHFRQVXPHU´ for a purpose which can be regarded as being outside his trade or profession, or a contract for the provision of credit for that object. 26 $UWLFOHWLWOHG³0DQGDWRU\UXOHV´UHDGV ³:KHQDSSO\LQJXQGHUWKLV&RQYHQ - tion the law of a country, effect may be given to the mandatory rules of the law of another country with which the situation has a close connection, if and in so far as, under the law of the latter country, those rules must be applied whatever the law applicable to the contract. In considering whether to give effect to these mandatory rules, regard shall be had to their nature and purpose and to the consequences of their application or non-application. 2. Nothing in this Convention shall restrict the application of the rules of the law of the forum in a situation where they are mandatory irrespective of the law otherwise applicable to the contract.” 27 See mentioned Section 109. 28 See for example, Zippo Manufacturing Company v. Zippo Dot Com, Inc., 952 F. Supp. 1119 (W.D. Pa. 1997), which is not a consumer contract case. 29 OJ 17.7.2000 L 178/1. 30 COMMISSION RECOMMENDATION of 30 March 1998 on the principles applicable to the bodies responsible for out-of-court settlement of consumer disputes, OJ 17.4.98, L 115/31 and COMMISSION RECOM- MENDATION of 4 April 2001 on the prin- ciples for out-of-court bodies involved in the consensual resolution of consumer disputes, OJ 19.4.2001, L 109/56. As a world-wide project, see the UNCITRAL Model Law on International Commercial Conciliation. 31 Commission Working Document on the creation of an Extra-Judicial Network (EEJ- Net), SEC (2000) 405. 32 ³9,',6387(5(62/87,21$1'5(- '5(66´ ³$ $33/,&$%/( /$: $1' JURISDICTION” of Part 2 of the Guidelines states as follows; ³%XVLQHVVWRFRQVXPHUFURVVERUGHUWUDQV - actions, whether carried out electronically or otherwise, are subject to the existing framework on applicable law and jurisdic- tion. Electronic commerce poses challenges to this existing framework. Therefore, con- sideration should be given to whether the existing framework for applicable law and MXULVGLFWLRQVKRXOGEHPRGL¿HGRUDSSOLHG differently, to ensure effective and transpar- ent consumer protection in the context of the continued growth of electronic commerce. In considering whether to modify the exist - ing framework, governments should seek to ensure that the framework provides fair- 2529 E-Commerce and Dispute Resolution ness to consumers and business, facilitates electronic commerce, results in consumers having a level of protection not less than that afforded in other forms of commerce, and p r o v i d e s c o n s u m e r s w i t h m e a n i n g f u l a c c e s s to fair and timely dispute resolution and redress without undue cost or burden.” This work was previously published in Cyberlaw for Global E-business: Finance, Payments, and Dispute Resolution, edited by T. Kubota, pp. 239-254, copyright 2008 by Information Science Reference (an imprint of IGI Global). 2530 Copyright © 2009, IGI Global, distributing in print or electronic forms without written permission of IGI Global is prohibited. Chapter 8.11 The Regulation of New Forms of Electronic Fund Transfers in Japan Focusing on Electronic Money Takashi Nakazaki 1 Anderson Mori & Tomotsune, Japan ABSTRACT In this chapter, after surveying existing Japanese public laws that regulate the transfer of funds via the Internet, and focusing on electronic money in particular, It will be discussed how these existing regulations may apply to new electronic payment methods that may not have been accounted for when these regulations were established, whether WKHUHJXODWLRQVDUHVXI¿FLHQWWRERWKSURYLGHFRQ- venience to the user and protect their safety, and whether these regulations are desirable as busi- ness conditions for developing electronic money. Through these discussions, certain objectives will be developed, which should be taken into account when developing regulations in Japan on the transfer of funds via the Internet. Also, this chapter discusses anti-money laundering regulations applicable to transfers of funds on the Internet, focusing on electronic money, and will examine how Japanese money laundering regulations may apply to cross-border transfers of funds using overseas electronic money services. Through this examination, the chapter will at- tempt to suggest desirable money laundering regulations on domestic electronic money in the near future. Furthermore, this chapter discusses real money trade and point-rewarded programs in v ie w of f u n c t io n o f p ay m e n t o r t r a n sf e r r i n g f u n d s electronically in extended research sections, and closes by predicting future research directions. INTRODUCTION: WHY ELECTRONIC MONEY NOW? Electronic Money has Increasingly become a Part of Personal Lives in Japan The use of Electronic Money has been expanded in Japan in recent years, and it has come to be 2531 The Regulation of New Forms of Electronic Fund Transfers in Japan Focusing on Electronic Money used transactions in various goods and services. As the commercial online transactions quickly spread among general consumers, the necessity for establishing electronic payment methods has increased. Also, as the domestic player population of online games continues to expand, intermediate agents on the Internet specialized for Real Money 7UDGLQJ KHUHLQDIWHU UHIHUUHG WR DV ³507´ meaning the exchange of virtual currency within online games with the currency of the real world, has also appeared. Meanwhile, in the real world, in order to avoid the time and effort involved in using cash at vending machines, convenience stores, and so forth, IC chips that act as Electronic Money devices have been introduced. IC chips working as Electronic Money have become a standard function of cellular phones and cellular phones themselves, which are widely used by the Japanese, have an Electronic Money function. The integration of IC chips into cellular phones brought about an increase in the number of users of Electronic Money. Moreover, it did not stop o n l y a t t r a n s a c t i o n s w i t h e n t r e p r e n e u r s s u p p l y i n g goods and service, also allowed users to transfer the electronic value recorded on IC chip to each other. In addition, the number of shops that ac- cept Electronic Money from existing Electronic Money issuers has increased rapidly, thanks to associations with other issuers. Furthermore, large-sized mass home electronics retailers and airline companies have started a service which converts points and mileage into Electronic Money issued by other entities. How has the Japanese Government Responded to the Spread of Electronic Money? As a social phenomenon, Electronic Money has started to spread to general consumers, rather WKDQPHUHO\EHLQJFRQ¿QHGWRVSHFLDOXVHJURXSV Therefore, the introduction of legislation regulating Electronic Money in order to protect consumers has b e c o m e i n c r e a s i n g l y u r g e n t . F r o m t h e 19 9 0 s , m e m - bers of the Japanese government have frequently advocated the introduction of full-scale legislation on Electronic Money and have issued research reports. Although these reports are available to the public, since Electronic Money has not yet become fully widespread, the legislation which covers Elec- tronic Money widely has not yet been established. In this situation, the Working Group on Information Technology Innovations and Financial Systems KHUHLQDIWHUUHIHUUHGWRDVWKH³:RUNLQJ*URXS´ under the Sectional Committee on Financial Sys- tem of the Financial System Council of Financial Services Agency (FSA) has held several hearings from providers of prepaid-type electronic payment services, focusing on the detailed content of their services and their safety measures. The Working Group released a memorandum from the chairman 23 )6$ WKH ³&KDLUPDQ 0HPRUDQGXP´ WR WKHSXEOLFHQWLWOHG³,VVXHVIDFLQJWKH'HYHORSPHQW of New Electronic Payment Services” in April, 2006. The Chairman Memorandum is primarily a summary of: (1) matters to be considered by service providers and (2) issues to be studied by the government in the future. However, the Chairman Memorandum covers only prepaid-type electronic payment services, VXPPDUL]HGDQGFDWHJRUL]HGLQWR³HOHFWURQLFSD\- PHQWVHUYLFHVXVLQJ,&FKLSV´DQG³HOHFWURQLFSD\- ment services over the Internet” and does not cover the newest forms of electronic funds transfer, such as point cards or air miles. Moreover, the Working Group approached the matter mainly from the view point of how to raise the reliability of prepaid-type electronic services through more stable payments and stronger user protection, not from the view point of the right to issue currency only being permitted E\WKHQDWLRQ¿QDQFLDOSROLF\DQGEDODQFLQJZLWK strict regulations on banks. The Aim of this Chapter In this chapter, after surveying existing Japanese public laws that regulate the transfer of funds via the Internet, and focusing on Electronic Money in 2532 The Regulation of New Forms of Electronic Fund Transfers in Japan Focusing on Electronic Money particular, it will be discussed how these existing regulations may apply to new electronic payment methods that may not have been accounted for when these regulations were established, whether WKHUHJXODWLRQVDUHVXI¿FLHQWWRERWK DSURYLGH convenience to the user and protect their safety, and whether these regulations are desirable as business conditions for developing Electronic Money. Through these discussions, certain objec- tives will be developed, which should be taken into account when developing regulations in Japan on the transfer of funds via the Internet. Also, this chapter discusses anti-money laundering regulations applicable to transfers of funds on the Internet, focusing on Electronic Money, and will examine how Japanese money laundering regulations may apply to cross-bor- der transfers of funds using overseas Electronic Money services. Through this examination, this chapter will attempt to suggest desirable money laundering regulations on domestic Electronic Money in the near future. Lastly, the extended research sections discuss real money trade and point-rewarded programs, focusing on the use of such services to make pay- PHQWVRUWUDQVIHUIXQGVHOHFWURQLFDOO\DQGWKH¿QDO section predicts future research directions. WHAT IS “ELECTRONIC MONEY”? Discussions So Far When considering regulations on Electronic Money, LWLVQHFHVVDU\¿UVWWRFOHDUO\LGHQWLI\WKHVXEMHFWRI the regulations. The common understanding of the WHUP³(OHFWURQLF0RQH\´YDULHVZLGHO\LQ-DSDQ One view insists that Electronic Money means electronic payment methods or general payment methods using advanced information communi- cation technology. The other view claims that the Electronic Money means the electronic data itself which has monetary value. By way of illustration, the understandings of Electronic Money indicated in WKHWZRUHSRUWVLVVXHGE\WKH¿UVW 4 and the second 5 (June 1998) round-table conferences on the theme RI(OHFWURQLF0RQH\DUHYHU\GLIIHUHQW7KH¿UVW report divides the digitalization of payment services into 1) the means of payment and 2) the method RISD\PHQW,QWKLVFRQWH[W³PHDQVRISD\PHQW´ means the instruments that have monetary value, VXFKDVFDVKDQG³PHWKRGRISD\PHQW´PHDQVWKH PHFKDQLVPVIRUWUDQVIHUULQJ³PHDQVRISD\PHQW´ such as payment by debit card and wire transfers XVLQJ RQOLQH EDQNLQJ 7KH ¿UVW UHSRUW GH¿QHV Electronic Money quite narrowly, as electronic data itself having monetary value within the category RI³PHDQVRISD\PHQW´7KHVHFRQGUHSRUWRQWKH other hand, explains that Electronic Money is a payment mechanism performed by the transfer or updating of an electronic record issued cor- responding to funds provided prior to issuance, or the electromagnetic record itself. In summary, the second report assumes that the meaning of Elec- t r o n i c M o n e y v a r i e s f r o m e l e c t r o n i c d a t a t o m e t h o d of payment, depending on the context. In revising the 1998 Foreign Exchange and Foreign Trade Law (Gaikokukawase oyobi Gaikokubouekihou,Law 1RRIDVDPHQGHGWKH³)(/´LWLQWHQGV to include both electronic payment services using IC-chip-embedded devices, such as IC cards and PRELOHSKRQHVKHUHLQDIWHUUHIHUUHGWRDV³,&FKLS type service”) and electronic payment services in which electronic value data is centrally managed solely on the service provider’s server (hereinafter UHIHUUHGWRDV³6HUYHU0DQDJLQJW\SHVHUYLFH´LQWR WKHGH¿QLWLRQRI³PHDQVRISD\PHQW´DSSOLHGE\ WKHVDLGODZDQGVHWVRXWWKHGH¿QLWLRQVLQWKH)(/ accordingly. 6 The FEL is the only piece of legisla- WLRQZKHUH(OHFWURQLF0RQH\LVGH¿QHG7KH)(/ GH¿QLWLRQVZHUHKRZHYHUFUHDWHGLQWKHFRQWH[W of the FEL, and are only used in this article for reference purposes. The Chairman Memorandum does not use WKHWHUP(OHFWURQLF0RQH\EXWXVHV³(OHFWURQLF Payment Services” instead. This seems to try to clarify the subject of prospective regulations in the near future, by excluding the vague and 2533 The Regulation of New Forms of Electronic Fund Transfers in Japan Focusing on Electronic Money multiple meanings corresponding to the term Electronic Money. Position of this Article on How to Analyze the Term Electronic Money Although the expression Electronic Money is used in this chapter, it is not realistic to pursue a VLQJXODUVWULFWGH¿QLWLRQRIWKHWHUPKHUHDVVXFK GH¿QLWLRQKDVORQJEHHQGHEDWHGDQGUHPDLQV controversial. In order to determine how increasingly preva- lent Electronic Money transactions should be regulated, it would be useful to determine and analyze the core elements of Electronic Money that are common to all understandings of the term. In the following section, such core elements will EHGLVFXVVHGDIWHUSURYLGLQJDORRVHGH¿QLWLRQ of the concept of Electronic Money. 'H¿QLWLRQRI(OHFWURQLF0RQH\LQWKLV Chapter What Range Should Electronic Money Cover? 6KRXOG (OHFWURQLF0RQH\ PHDQRQO\³PHDQV RI SD\PHQW´RULQFOXGHERWK³PHDQVRISD\PHQW´DQG ³PHWKRGVRISD\PHQW´")RUWKHSXUSRVHVRIWKLV FKDSWHU³PHWKRGVRISD\PHQW´ LQWKHGH¿QLWLRQ of Electronic Money will not be included because PD Q\ ³PHW KR GVRIS D\ PHQW ´V XF KD VZL UH WU DQ VIHU V and credit payments through the Internet have be- come widely used in Japan, and have already been thoroughly discussed; it would be unnecessary to argue further that they should be regulated. Once we assume that Electronic Money does not include ³PHWKRGVRISD\PHQW´WKHQH[WTXHVWLRQLVZKHWKHU Electronic Money is limited to data having monetary value in and of itself, or in addition, whether it should include a payment scheme using electronic means of payment, that is, data with monetary value. A payment scheme using electronic means of payment differs from electronic methods of payment using non-electronic means of payment insofar as in the former system, users directly control the data with monetary value. Users of electronic methods of payment using non-electronic means of payment may only give instructions to the entities actually controlling the non-electronic means of payment, such as cash, that is, banks and credit card com- panies. Even if the meaning of Electronic Money is limited to data having monetary value in and of itself, it cannot be determined how Electronic Money transactions should be regulated without also analyzing the effect of payment by transfer- ring such data. Does Electronic Money Need Versatility? Whether it is necessary for Electronic Money to be versatile is arguable. The opinion of the author is that it is unnecessary. Whether Elec- tronic Money needs versatility, namely, whether payment by Electronic Money should be a perfect substitute for payment using cash currency, is primarily a political and theoretical issue, and is GLVWLQFWIURPLVVXHVRI¿QGLQJWKHVROXWLRQWRD VRFLDOSKHQRPHQRQ%\³DSROLWLFDODQGWKHRUHWL- cal argument,” it is meant that Electronic Money functioning as a perfect alternative for cash cur- rency will infringe the exclusive right of nations t o i s s u e c u r r e n c y, o r c o n t r a v e n e c u r r e n c y l a w s a n d regulations. However, making Electronic Money absolutely equivalent to cash by endowing it with versatility and cashability has been the aspiration of Electronic Money advocates. In addition, as a social phenomenon, some of the existing payment services which may be used only for purchasing certain goods or services tend to be versatile to some extent, through the relationship between VHUYLFHSURYLGHUV7KLVWHQGHQF\PDNHVLWGLI¿FXOW to draw a line regarding versatility. Core Elements of Electronic Money The three core elements which are generally . Japan The use of Electronic Money has been expanded in Japan in recent years, and it has come to be 2531 The Regulation of New Forms of Electronic Fund Transfers in Japan Focusing on Electronic. sf e r r i n g f u n d s electronically in extended research sections, and closes by predicting future research directions. INTRODUCTION: WHY ELECTRONIC MONEY NOW? Electronic Money has Increasingly. ap- proaches to e-commerce regulation: Jurisdiction, electronic contracts, electronic signatures and taxation. Denver Journal of International Law and Policy, 31, 325. Stone, P. (2006). EU private