Improvement Status Report describing the implementation and operating status of improvement measures
FISCO Ltd., its consolidated subsidiary 株式会社フィスコ・コンサルティング, and other affiliated companies
Crypto assets Fisco Coin (FSCC), CICC and NCXC, and the crypto-asset exchange Zaif
The detailed rules for crypto-asset transactions did not apply to the consolidated subsidiary; the check-and-balance function was ineffective because of concurrent directorships; recognition of market characteristics was insufficient; accounting verification was insufficient; coordination with the audit firm was insufficient; and monitoring by the Internal Audit Office was insufficient.
Company response
FISCO Ltd. suspended its crypto-asset transactions until the necessary framework was established. As of the end of March 2026, there had been no crypto-asset transactions by affiliated companies involving the Company’s officers or employees.
After completion of the framework, although the specific expected resumption date is Not disclosed
Internal Investigation Committee (chair: Mochizuki Masakatsu (望月真克); members: Kajisa Atsutomo (加治佐敦智), Morihana Tatsuo (森花立夫); investigation period: 8 April to 11 June 2025); Additional Internal Investigation Committee (chair: Mochizuki Masakatsu (望月真克); members: Okamoto Junko (岡本純子), Kiroko Yoshiyuki (木呂子義之); investigation period: 12 June to 30 July 2025)
Establishment of rules relating to crypto assets and prior approval procedures; maintenance of minutes and attendance records for regular meetings; establishment of a risk management framework for transactions affecting prices between group companies; review and termination of arrangements involving concurrent directorships; consideration of valuation methods suited to the characteristics of crypto-asset markets; measures to promote recognition and awareness of market characteristics; enhancement of internal audits; provision of training opportunities concerning crypto-asset transactions and financial and accounting procedures; and stronger coordination with the audit firm
Representative Director Nakamura Takaya (中村孝也) and Director Matsuzaki Yushi (松崎祐之) resigned as directors of FISCO Ltd. effective 5 August 2025.
In the second quarter of the fiscal year ended December 2022, a crypto-asset valuation loss of ¥241 million was corrected by recording it as negative revenue. For the impairment of crypto assets for which no active market existed, a crypto-asset valuation loss of ¥233 million was corrected in the fiscal year ended December 2023 by recording it as negative revenue.
Second quarter of the fiscal year ended December 2022; fiscal year ended December 2023
Related procedures
Tokyo Stock Exchange, Inc. (recipient of the Improvement Status Report); Kinki Local Finance Bureau (recipient of the corrected report)
FISCO Ltd. will monitor developments in the crypto-asset market, continuously update the established internal control framework, and work to strengthen governance and restore trust. It will continue to verify the framework through internal audits and Audit & Supervisory Board reviews, and implement additional improvements as necessary.
| Item | Details |
|---|---|
| Event name | Improvement Status Report describing the implementation and operating status of improvement measures |
| Date of occurrence | 29 to 30 June 2022 (event concerning FSCC transactions and price formation; the Improvement Status Report was submitted on 20 April 2026) |
| Subject Entity | FISCO Ltd., its consolidated subsidiary 株式会社フィスコ・コンサルティング, and other affiliated companies |
| Target Locations / Products | Crypto assets Fisco Coin (FSCC), CICC and NCXC, and the crypto-asset exchange Zaif |
| Cause | The detailed rules for crypto-asset transactions did not apply to the consolidated subsidiary; the check-and-balance function was ineffective because of concurrent directorships; recognition of market characteristics was insufficient; accounting verification was insufficient; coordination with the audit firm was insufficient; and monitoring by the Internal Audit Office was insufficient. |
| Amount of Impact on Business Performance | In the second quarter of the fiscal year ended December 2022, a crypto-asset valuation loss of ¥241 million was corrected by recording it as negative revenue. For the impairment of crypto assets for which no active market existed, a crypto-asset valuation loss of ¥233 million was corrected in the fiscal year ended December 2023 by recording it as negative revenue. |
| Accounting period in which recognized | Second quarter of the fiscal year ended December 2022; fiscal year ended December 2023 |
| Court or authority | Tokyo Stock Exchange, Inc. (recipient of the Improvement Status Report); Kinki Local Finance Bureau (recipient of the corrected report) |
| Suspended operations | FISCO Ltd. suspended its crypto-asset transactions until the necessary framework was established. As of the end of March 2026, there had been no crypto-asset transactions by affiliated companies involving the Company’s officers or employees. |
| Scheduled resumption date | After completion of the framework, although the specific expected resumption date is Not disclosed |
| Investigation structure | Internal Investigation Committee (chair: Mochizuki Masakatsu (望月真克); members: Kajisa Atsutomo (加治佐敦智), Morihana Tatsuo (森花立夫); investigation period: 8 April to 11 June 2025); Additional Internal Investigation Committee (chair: Mochizuki Masakatsu (望月真克); members: Okamoto Junko (岡本純子), Kiroko Yoshiyuki (木呂子義之); investigation period: 12 June to 30 July 2025) |
| Measures to prevent recurrence | Establishment of rules relating to crypto assets and prior approval procedures; maintenance of minutes and attendance records for regular meetings; establishment of a risk management framework for transactions affecting prices between group companies; review and termination of arrangements involving concurrent directorships; consideration of valuation methods suited to the characteristics of crypto-asset markets; measures to promote recognition and awareness of market characteristics; enhancement of internal audits; provision of training opportunities concerning crypto-asset transactions and financial and accounting procedures; and stronger coordination with the audit firm |
| Directors' and officers' liability | Representative Director Nakamura Takaya (中村孝也) and Director Matsuzaki Yushi (松崎祐之) resigned as directors of FISCO Ltd. effective 5 August 2025. |
| Outlook | FISCO Ltd. will monitor developments in the crypto-asset market, continuously update the established internal control framework, and work to strengthen governance and restore trust. It will continue to verify the framework through internal audits and Audit & Supervisory Board reviews, and implement additional improvements as necessary. |
Items this document does not state (11)
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The stated causes were that the detailed rules for crypto-asset transactions did not apply to the subsidiary, preventing management under uniform rules; that the check-and-balance function did not operate because of concurrent directorships; and that recognition of market characteristics, accounting verification and coordination with the audit firm were insufficient. The prior-period corrections were made following discussions with the audit firm prompted by comments from an external organization and the market liquidity of the crypto assets held.