Stacey Steele and Anesti Petridis
Jin Chun and Stacey Steele
The treatment of executory contracts and ipso facto clauses is a controversial issue in contemporary debates about Japanese insolvency law. Wide-sweeping procedural and legislative reforms undertaken between 1996 and 2005 focused on fundamental structural and procedural problems which had built up over decades and were ripe for review after the collapse of the bubble economy in the early 1990s. Whilst the reforms addressed aspects of the treatment of executory contracts, the reforms did not significantly develop the statutory law in relation to ipso facto clauses. This chapter provides a summary of the current state of play in Japan in relation to executory contracts and ipso facto clauses.
Stacey Steele and Tetsuo Morishita
This chapter examines the Japanese insolvency proceedings of Mt Gox, one of the largest virtual currency exchanges in the world at the time of its collapse. The case was controversial due to the drastic increase in the price of Bitcoins after the proceedings commenced in 2014. Complex property, financial services and insolvency law issues are still being worked through for the first time in Japan, but the case demonstrates the flexibility of Japanese insolvency laws which were substantially reformed in the early 2000s. The chapter also considers the impact of reforms in 2016 emanating from Japan’s experience. Mt Gox also drew attention to the intersection of exchanges with traditional payment systems as a result of the increase in the use of virtual currencies and the technology underlying Bitcoin known as blockchain. The chapter concludes by considering further reform options for the regulation of exchanges.