Virtual currency can be used as a representation of value for goods and services, and can be used by an unspecified number of users through the internet. It exists without the presence of a public issuing body such as a central bank, nor any regulators, and can be exchanged for currencies such as Yen, Dollars, Euros, and Renminbi, at specialized exchange centers. It is said that there are over 600 types of virtual currencies in existence.
Act on Financial Transactions, Article 2, Section 5
Virtual currency as described in this Act refers to:
1. Asset-like values (limited to those items electronically recorded by electronic or other equipment and excluding Japanese currency, foreign currency, and currency-denominated assets; the same applies to the item below) usable as payment to indefinite parties for the cost of purchase or rent of items or receipt of services and which can be transferred by means of electronic data processing systems;
2. Asset-like values that can be used in exchange with indefinite parties for those items described in the preceding item and which can be transferred by means of electronic data processing systems.