ADA - LINE Bitmax Listing and Program to Implement a DApp for payments in ADA on LINE

[GENERAL] Name and surname of main applicant

Fred Tanaka

[GENERAL] Are you delivering this project as an individual or as an entity (whether formally incorporated or not)

Entity (Incorporated)

[GENERAL] Co-proposers and additional applicants

Nishimura & Asahi

Shinnosuke Fukuoka, Scott Alper

Akira "Andrew" Tamura

[GENERAL] Please specify how many months you expect your project to last (from 2-12 months)

12

[GENERAL] Please indicate if your proposal has been auto-translated into English from another language

No

[GENERAL] Summarize your solution to the problem (200-character limit including spaces)

Secure listing on popular Japanese exchange LINE Bitmax to increase liquidity, recognition, and enhance credibility. Develop DApp for payment on LINE for more transactions, demand, awareness of ADA.

[GENERAL] Does your project have any dependencies on other organizations, technical or otherwise?

Yes

[GENERAL] If YES, please describe what the dependency is and why you believe it is essential for your project’s delivery. If NO, please write “No dependencies.”

LINE Corporation for their support in providing the development and marketing promotion collaboration and resources to enable ADA wallet integration, development, testing, and verification of DApp for payment in ADA, and payment conversion for merchants.

[GENERAL] Will your project’s output/s be fully open source?

No

[GENERAL] Please provide here more information on the open source status of your project outputs

The project is created through co-creation with various stakeholders, including private entities and influencers supporting us in an official capacity requiring anonymity. Therefore it is not possible to make our project open source, as it would result in a breach of confidentiality and proprietary information belonging to the stakeholders.

However, any information not covered under confidentiality agreements will be published on GitHub.

[METADATA] Horizons

Financial Services

[SOLUTION] Please describe your proposed solution

Japan is an important market for cryptocurrency, with a regulatory landscape that is among the world’s most stringent yet supportive of innovation. The Financial Services Agency recognizes the indispensability of cryptocurrency, and its frameworks ensure the safety and legitimacy of crypto projects operating within its confines. Cardano (and ADA) has garnered interest in Japan, particularly because of its reputation for a research-driven, scientifically-backed approach to blockchain. However, Cardano’s presence in Japan has remained limited to exchanges and investment use cases, and real-world utility is still in its early stages.

LINE Corporation, one of Japan’s most popular messaging and social media apps, launched LINE Bitmax, a cryptocurrency exchange within its app in 2019. This platform provides LINE’s user base with easy access to cryptocurrency, and a listing for ADA on Bitmax would allow LINE’s Japanese users to engage with ADA seamlessly. Integrating a Cardano-based DApp for ADA payments within LINE would enable ADA to move beyond investment, offering Japanese users the ability to conduct everyday transactions with ADA within an established ecosystem.

While Cardano has a loyal community in Japan, its practical usage remains limited. ADA is widely viewed as an investment vehicle rather than a tool for real-world applications, due to a current shortage of DApps and payment solutions utilizing ADA in everyday contexts. Although Cardano has a solid reputation, a lack of ADA payment channels has made it difficult to drive broader adoption and showcase its utility.

At the same time, competition in Japan’s blockchain ecosystem is heating up, with established players like Ethereum and newer entrants are offering applications and growing their user bases. This competitive landscape puts the heat on Cardano to demonstrate ADA’s versatility and use beyond trading.

A listing on LINE Bitmax, paired with an ADA payment DApp, represents a unique opportunity for Cardano to differentiate itself in Japan. By providing tangible utility for ADA within one of Japan’s largest digital ecosystems we can accelerate ADA’s acceptance and shift perceptions from a speculative investment to a functional digital currency.

Successful ADA integration within LINE will serve as a foundation for expanding the Cardano ecosystem in Japan. As ADA becomes more familiar to users, Cardano could introduce additional DApps, smart contracts, and blockchain services tailored for Japanese businesses and consumers.

In addition, being featured on a platform as widely recognized as LINE would enhance Cardano’s reputation in Japan. This positioning will strengthen Cardano’s foothold and give it a unique advantage over other cryptocurrencies that do not have such mainstream integrations for developments with other popular exchanges that have resisted calls hitherto to list ADA. 

[IMPACT] Please define the positive impact your project will have on the wider Cardano community

Listing ADA on LINE Bitmax can have a significant positive impact on the Cardano community in Japan and also globally.

In Japan it will result in expanded accessibility to investors. LINE Bitmax’s integration into the LINE app which is an essential daily tool for approximately 90 million citizens of Japan would facilitate access to ADA, even if they’re new to crypto. This convenience could bring ADA to a wider demographic, including users who may not typically engage with traditional crypto exchange.

Further, Japan has a highly regulated crypto environment, and a listing on Bitmax shows that ADA complies with strict regulatory standards. This stamp of approval would likely enhance ADA's credibility among Japanese investors and boost their trust in ADA as a secure and viable cryptocurrency increasing liquidity for the platform due to the higher trading volumes anticipated. Our hope is that it would support price stability that benefits all holders and further attracts institutional interest worldwide.

Japan is a respected leader in blockchain innovation and ADA’s listing on LINE Bitmax can position Cardano as a trusted blockchain choice on a local, regional, and global scale. This bolsters Cardano’s image as a secure, scalable blockchain protocol that is widely accepted in the aspirational Japan market.

Success with LINE can encourage similar listings and collaborations with other major players in Japan like Coincehck. The visibility and success that ADA achieves on LINE Bitmax may pave the way for partnerships, listings, and integrations in other regions as well amplifying Cardano’s influence and adoption worldwide.

A more robust Japanese user base will influence the region and create lasting value for the wider Cardano community as well. Increased adoption in Japan ensures a steady user influx and potential for massive growth once the market hits an inflection point as early as 2025. This will reinforce the ecosystem and promote Cardano’s mission to build an inclusive and decentralized financial network.

The listing would spark more community-driven events, online discussions, and meetups within Japan. Increased engagement would lead to a stronger, localized support network for Cardano.

With more Japanese users holding and interacting with ADA, developers and businesses within Japan may feel more incentivized to build on Cardano. This can lead to unique local solutions, such as Japanese-language payment dApps or partnerships.

Qualitative Aspects

The building of trust in the Cardano brand and in Japan is a key benefit of our engagement on this proposal. LINE’s strong reputation in Japan could lead to a positive perception of ADA among Japanese users positioning it as a trusted asset. This brand recognition could lead to more interest and engagement from both retail and institutional investors.

Partnering with LINE would set Cardano apart from other blockchain projects developing a base for wider mainstream appeal.

Quantitative Aspects

LINE’s large user base and high engagement with over 90 million active users in Japan, representing about 70% of the population, offers a tremendous pool of potential ADA investors. Even a small percentage of LINE’s users could lead to a significant increase in liquidity. For example, if 1% of LINE users, 900,000, start trading ADA, this would boost ADA’s daily trading volume on LINE Bitmax. Based on LINE users’ activity and Japan’s average trading volume on crypto exchanges, a conservative estimate would place the potential liquidity increase at several million USD per month.

This project represents a significant opportunity to tremendously impact Cardano from a qualitative and quantitative perspective. Its success will change the way that influencers perceive Cardano and bring it closer to the awareness level of more well known tokens in the market. In addition to greater brand equity and affinity we would count on an increase in ADA liquidity paving the way for further growth and adoption.

[CAPABILITY & FEASIBILITY] What is your capability to deliver your project with high levels of trust and accountability? How do you intend to validate if your approach is feasible?

Our Collaborative Approach

The strategic planning, program direction, preparation of documents, navigation of the regulatory environment, influencer relations, coordination, and overcoming of obstacles project will be a tightly coordinated, assertive endeavor conducted by seasoned individuals and entities who will provide the connections and capabilities required to move the project forward and motivate the players involved.  

Key Collaborators and Their Contributions: 

• Nishimura & Asahi: One of Japan's largest and most prestigious law firms, Nishimura & Asahi is highly regarded for its depth in corporate and financial law and complex resolutions. The firm has been proactive in blockchain, fintech, and data privacy and advise on cryptocurrency regulations.

• LINE Bitmax: A cryptocurrency exchange that is leveraging the trust and massive user base of LINE, one of Japan’s most popular messaging and social apps.

• LINE Corporation: LINE Corporation is a leading Japanese tech company known primarily for its messaging app, LINE that has built a vast digital ecosystem including LINE Pay which plays a critical role in facilitating cashless payments and digital finance.

• Media / Industry Influencers: Insights and cooperation of cryptocurrency industry insiders in media with extensive in-depth knowledge, a strong network within Japan’s crypto ecosystem.

For the development of the Dapp we will proceed under advisement of leaders of the Cardano ecosystem regarding recommendations for organizations with a proven track record for developing decentralized applications that facilitate payments using ADA. In addition, we will engage with LINE for development collaboration and direction on meeting the needs of their requirements and strict compliance standards.

Additionally, we will engage community managers and leaders who are enthusiastic and have a stake in the success of Cardano in the Japan market and can assist in troubleshooting and navigating the Cardano ecosystem.

By leveraging the expertise and perspectives from industry leading players, we will drive this ambitious project forward to establish a landmark listing to drive the expansion and utilization of Cardano in the Japan market.

Please see the following for detailed accomplishments of each collaborator.

Shinnosuke Fukuoka

Partner, Nishimura & Asahi

Career:

• Specializes technology legal matters for blockchain, Web3, the Metaverse, and AI.
• Member of the Cabinet Office's "Human-Centered AI Social Principles Review Committee" and the Ministry of Economy, Trade and Industry's "AI and Data Contract Guidelines Review Committee."
• Agent for Mt.Gox's civil rehabilitation proceedings.
• Provides legal advice to cryptocurrency holders and regarding DAOs, NFTs, and the Metaverse.

• Author of books including: 
• "DAO Structure and Legal Practice" (Commercial Law)
• "Web3 Business and US Law - Application of Fund Transfer Laws to Crypto Assets"
• "Web3 Business and US Law (2) Applicability of Securities and Exchange Laws to Cryptocurrencies" 
• "Legal Issues in Generative AI - Copyright Edition", and "Laws and Issues in the Metaverse (Part 1) (Part 2)".

Yusuke Motoyanagi

Partner, Nishimura & Asahi

Career:

• Provides advisory on blockchain-related businesses since around 2017 including the design of token-related businesses both in Japan and overseas markets.
• Advisory on token-related transactions and regulatory advice on blockchain apllication.

• Articles: 
• "STO Legal and Practical Q&A" (Shojihomu, 2020)
• "Summary of Issues Regarding the Electronicization of Securities" Kinzai Houmu Jijo No. 2153 (2021) 
• "Utilization of Blockchain in Stock-Related Affairs" NBL No. 1168 (2020)
• "ICO (Initial Coin Offering) and Legal Issues" (Asahi Judiciary, Asahi Shimbun Website, "Law and Economic Journal" "Nishimura Asahi's Legal Outlook")
• "[Roundtable Discussion] Legal Considerations of Blockchain (Part 1) (Part 2)" NBL No. 1094, 1096 (2017) 
• 
  

Dai Mizui

Associate, Nishimura & Asahi

Career:

• Legal advisory on the construction of a platform for issuing and selling NFTs to domestic and overseas residents
• Legal advisory on the issuance and sale of NFTs by overseas issuers to domestic residents, and crowdfunding using NFTs • Legal advice for cryptocurrency exchange operators
• Legal advisory on incentive plans using tokens
• Legal advisory on prepaid payment for stablecoins
• Due diligence for overseas DAO corporations
• Legal advice on token-convertible financing

• Article: 
• "Responses to cases of cryptocurrency leakage due to impersonation" (Financial Legal Affairs No. 2134 (March 25, 2020 issue)) a
• Seminars:
• "Regulation of Stablecoins
• “Legal Issues on NFTs and the Metaverse"
• Others

Kaku Hirao

Partner, Nishimura & Asahi

Career:

• Appointed as a member of the Liberal Democratic Party Digital Society Promotion Headquarters' "web3 Project Team (formerly the NFT Policy Review Project Team)" working group.
• In charge of many cases related to the use of Web3 in the sports business.
• Involved in the formulation of the "Guidelines for packaged sales of NFTs using sports content and the co-location of secondary distribution markets" by the Sports Ecosystem Promotion Council. 
• Involved in the formulation of the "Guidelines for random sales of NFTs" by the same council and four blockchain industry organizations.

Nishimura & Asahi

• Website

Established in Tokyo in 1966, Nishimura & Asahi is the largest international law firm in Japan, with 20 locations around the world and more than 800 professionals. The firm boasts highly specialized practice groups work closely together to find answers and tackle unprecedented challenges, providing comprehensive, strategic solutions that meet the business needs of our clients regardless of field or complexity.

Nishimura & Asahi has established significant relationships with major players in the fintech and cryptocurrency sectors, including LINE Corporation, Rakuten Group, and Monex.

The firm advised Nomura Holdings, Inc. on restructuring the financial services business of LINE Securities Corporation, a joint venture with LINE Financial Corporation. This collaboration underscores the firm's role in facilitating strategic developments within LINE's financial services, including its cryptocurrency exchange, LINE Bitmax.

It has also provided legal counsel to Rakuten Group, Inc. during the reorganization of its fintech business. This engagement highlights Nishimura & Asahi's involvement in significant structural changes within Rakuten's financial services, encompassing areas like online banking, credit cards, securities, and insurance.

The firm advised Monex Group, Inc. and its subsidiary, Coincheck, Inc., during Coincheck's $1.3 billion SPAC merger with Thunder Bridge Capital Partners IV, Inc. This significant transaction highlights Nishimura & Asahi's expertise in complex financial and regulatory matters within the cryptocurrency industry.

Additionally, the firm has authored publications on cryptocurrency regulations, such as the "Getting the Deal Through: Cryptoassets & Blockchain 2023: Japan" article, which provides insights into Japan's legal landscape for crypto assets and blockchain technology. 

Through these engagements, Nishimura & Asahi has demonstrated its expertise in navigating complex legal landscapes in the fintech and cryptocurrency industries, supporting major corporations in their strategic initiatives and compliance efforts.

Fred Tanaka

Lightning Communications / Intersect Marketing WG

• · LinkedIn
• PR for IOHK, EMURGO, dcSpark, Paima, and other fintech, crypto, and Web3 clients.
• Partnerships with Dentsu East Japan, Publicis Groupe companies, and Monex for advisory and/or support on client/project services as well as handover introductions.
• Event coordination, direction, and participation in Nihon Keizai Shimbun events and marketing and Japan Broadband Association event planning and marketing.
• Implemented LINE Pay for Groupon Japan - negotiated terms, planned and executed marketing campaign (incl. TV, social, online media) and analyzed data for product placement planning.
• Planned and conducted LINE Stamp marketing program for Groupon Japan from creative, promotion, and measurements to increase awareness, develop engagement and loyalty, and drive traffic.
• Business development lead for Groupon Japan setting up partnerships with McDonald’s Japan, Burger King, and developing breakthrough with Domino’s Pizza and Wendy’s / First Kitchen.
• Media sponsor of the TEAMZ event.

We have the firm contract of LINE though we cannot disclose the names now due to contractural and other considerations as follows below.

We understand how important it is to have transparency and detailed information about our collaborators, especially in a high-stakes and impactful partnership like the one with LINE. However, due to the sensitive nature of the discussions and the protocols we must follow with a company as strategically significant as LINE, we are required to maintain confidentiality until the final decision is made regarding our approval. This not only ensures that we respect LINE's confidentiality policies but also protects the integrity of our partnership efforts.

We are committed to sharing the full details of our collaboration as soon as we have official confirmation, and we remain dedicated to delivering the best possible outcomes for our project.

Others to be announced as well as industry influencers who will be supporting this initiative undisclosed or in an official (but truly effective) capacity in a Japanese context.

[PROJECT MILESTONES] What are the key milestones you need to achieve in order to complete your project successfully?

Milestone 1: 2025/1~2025/04

Proposal for Listing

In Milestone 1, we will produce the following deliverables:

• Initiation of official approach to LINE Bitmax and entering of the submission process
• Preparation of documentation - technical specifications, security protocols, and compliance measures (strategize as required)
• Planning and development of application to the FSA
• Facilitate review process and obtain approval to proceed with listing

To deliver these outputs, we will conduct the following activities:

• Ensure ADA complies with the Payment Services Act.
• Engage with our contacts at LINE and LINE Bitmax to facilitate a smooth process including favorable terms.
• Outline the benefits of listing ADA on LINE Bitmax, emphasizing Cardano’s stability, transaction speed, low fees, and user base in Japan.
• Showcase Cardano’s potential for mainstream adoption, pointing to use cases and user demand for ADA as a payment option.
• Present a roadmap for ADA's integration, highlighting Cardano’s long-term commitment to the Japanese market.
• Respond to inquiries and requirements for additional documentation to address any concerns.
• Negotiation of listing fee and advisory on activities to facilitate process
• Reporting on monthly basis of activities and progress.
• Arrange high-level meetings to establish relationships with LINE’s leadership - product development, legal, compliance. 
• Engage with LINE Bitmax’s listing team to discuss ADA’s listing and integration.
• Engage Cardano Foundation and Key Stakeholders:
• Work with the Cardano Foundation and local stakeholders to support the proposal with endorsements.
• Involve Input Output (IOG) and EMURGO in planning and discussions, as their technical and market expertise can strengthen the proposal.
• Develop a plan of attack to generate community support and excitement.

Acceptance Criteria

The deliverables will be considered "accepted" if they meet the following criteria:

• Stakeholder Meetings: Records the names (or initials), interview dates, and summaries of the meetings.
• Documentation: All submitted documents must include the above elements and be saved on Google Drive or Notion with publicly accessible links.
• Advisory: Insights and findings to facilitate process and prepare for a successful listing and payment integration.

Evidence of Milestone Completion

To prove the completion of the milestone, we will submit the following:

Documents: A progress report including a list of actions undertaken including feedback, necessity of additional actions or documentation required, and notation of completion or timeline for getting it done. Provide a timeline sheet to manage way forward and progress based on planning, negotiations, and confirmations with all stakeholders. Status updates and insights to the extent possible on the guarded process.

Milestone 2: 2025/04~2025/5

Confirm listing go ahead and initiate meetings to facilitate the process of developing a DApp for payment in ADA on LINE.

To deliver these outputs, we will conduct the following activities:

• Detailed and careful planning including reviews as follows:
• Conduct a feasibility study to determine the technical requirements and legal implications of integrating a Cardano-based DApp on LINE’s platform and facilitating ADA payments through LINE Bitmax.
• Clarify goals for the DApp, such as enabling peer-to-peer ADA payments, merchant payments, or integration with LINE’s existing services. Consider scalability, transaction fees, and security as core aspects.
• Report to ADA on LINE’s standards for security, compliance, user experience, and cultural sensitivities for functionality.
• Report on Financial Services Agency’s guidelines for crypto payments and consumer protection.
• Reviews, recommendations, and interviews with developers to work with us and LINE on the set up of the payment DApp.

Ensure ADA complies with Japan's Financial Services Agency regulations.

• Collaborate with LINE's technical team to integrate ADA into their trading platform, ensuring seamless transactions and security.

Acceptance Criteria

The deliverables will be considered "accepted" if they meet the following criteria:

• Stakeholder Meetings: Records the names (or initials), interview dates, and summaries of the meetings.
• Documentation: All submitted documents must include the above elements and be saved on Google Drive or Notion with publicly accessible links.
• Advisory: Insights and findings to facilitate process and prepare for a successful listing and payment integration.
• 
  

Evidence of Milestone Completion

To prove the completion of the milestone, we will submit the following:

Documents: A progress report including a list of actions undertaken including feedback, necessity of additional actions or documentation required, and notation of completion or timeline for getting it done. Provide a timeline sheet to manage way forward and progress based on planning, negotiations, and confirmations with all stakeholders. 

Milestone 3: 2025/04~2025/6

Development of a DApp for Payment Services on LINE

• Define and set parameters of functionality.
• Collaborate with LINE’s engineering team to identify integration requirements for a DApp on the LINE platform including API compatibility, user interface integration, and transaction handling mechanisms.
• Review of design for secure, efficient smart contracts for ADA transactions on LINE.
• Ensure the DApp’s UI matches LINE’s design standards for an intuitive, seamless, and user-friendly aesthetic to facilitate adoption.
• Review ADA payments for conversion to JPY for merchants by developing a backend to support this through LINE Bitmax’s infrastructure.

Acceptance Criteria

The deliverables will be considered "accepted" if they meet the following criteria:

• Ensure compliance with LINE’s standards for third-party DApp with a view to it undergoing rigorous security testing to meet LINE’s criteria and pass audits.
• Regulatory and compliance setup in coordination with our legal team to ensure the DApp complies with the Payment Services Act and other Financial Services Agency regulations and laws.
• Ensure integration of Know Your Customer and Anti-Money Laundering checks into the DApp for regulatory compliance. 
• Coordinate with LINE’s compliance team to ensure the DApp adheres to Japanese legal standards and aligns with LINE’s internal policies.
• Ensure that we are fulfilling legal obligations while maintaining user privacy and usability to confirm complete compliance. 
• Ensure that planning is thorough and documents are in order for compliance from relevant authorities.
• 
  

Evidence of Milestone Completion

To prove the completion of the milestone, we will submit the following:

• Documents: A progress report including a list of actions undertaken including feedback, necessity of additional actions or documentation required, and notation of completion or timeline for getting it done. Provide a timeline sheet to manage way forward and progress based on planning, negotiations, and confirmations with all stakeholders.
• Prepare complete documentation including reports, meeting minutes.
• Presentation of solutions to overcome challenges and implementation plans.

Milestone 4: 2025/5 ~ 2025/5

Confirm the official launch date of ADA on LINE Bitmax in advance and implement the following activities to maximize visibility and adoption through a coordinated marketing, PR, and celebration campaign to create significant momentum and ensure ADA’s listing makes a big impact.

Develop launch announcement and PR strategy

• Announce ADA’s listing on LINE Bitmax with a press release that highlights the significance of its availability on one of Japan’s largest social platforms.
• Target top Japanese media outlets (Nihon Keizai Shimbun, TV Tokyo, NHK, and national dailies) as well as industry trade and tech-focused publications to cover the announcement. 
• Plan for a press conference and organize interviews and Q&A sessions with Charles Hoskinson, EMURGO, CF, Project Catalyst, and LINE Bitmax executives.
• Host a virtual event through LINE Live (LINE’s streaming service) or YouTube to celebrate ADA’s listing. Feature appearances from Cardano’s leadership and Japanese partners, share Cardano’s mission, and reveal promotional campaigns.

Social Media and Community Engagement

• Leverage LINE’s official social media accounts (Twitter, Facebook, Instagram) to announce the listing, emphasizing ADA’s accessibility and benefits.
• Initiate interactive campaigns on LINE’s social media to engage users with campaigns based on user-generated content. 
• Run a giveaway or contest encouraging users to share their excitement and experiences.
• Collaborate with Japanese influencers and thought leaders in the cryptocurrency space to endorse ADA’s listing and educate their followers on ADA’s advantages and the ease of trading.
• Create interactive games, quizzes or mini-events on LINE’s social media accounts to keep the community engaged into the Christmas holiday season.
• Host an “Ask Me Anything” (AMA) session featuring Charles Hoskinson on Twitter Spaces or LINE Live. 

In-App Promotions and Engagement Campaigns (provisional)

• Launch a free LINE sticker set featuring ADA-branded designs, possibly incorporating a Cardano mascot or symbols with Japanese cultural elements to increase brand visibility and encourage LINE users to follow the official Cardano LINE account.
• Encourage LINE users to follow the Cardano official account by offering small ADA rewards or LINE Points. 
• Collaborate with LINE Bitmax to offer reduced transaction fees for ADA trades, incentivizing users to try ADA on the platform.
• Implement a referral campaign where users earn rewards (LINE Points, ADA, or discounts) for referring friends who trade on LINE Bitmax. This will boost adoption by turning users into promoters.
• Work with LINE’s advertising team to run a campaign with in-app notifications, banners, and homepage promotions that celebrate ADA’s listing. 

Acceptance Criteria

The deliverables will be considered "accepted" if they meet the following criteria:

• Development of an effective promotional plan with buy-in from key stakeholders on the Cardano and LINE Bitmax sides.
• Onboarding of Fred’s extended marketing and PR network to ensure the ambitious promotional plan is pulled off under tight timelines.
• Ensure close coordination and integration and cooperation of LINE’s marketing, PR, and events operations. . 
• Ensure that planning is thorough and documents are in order for efficient, professional implementation for maximum impact.

Evidence of Milestone Completion

To prove the completion of the milestone, we will submit the following:

• Planning documents and alignment of the resources required to track progress and conduct ground work.
• Press release and distribution coverage report.
• Host of online events and results / coverage report.
• Social media program implementation, management, and follow-ups.
• Prepare complete documentation including reports, meeting minutes.

Milestone 5: 2025/5 ~ 2025/7

Testing and Quality Assurance

• Test all aspects of the DApp, including transaction speed, security, and user experience, to ensure smooth operation.
• Close coordination with LINE’s QA team for rigorous testing, ensuring the DApp meets LINE’s standards.
• Before full deployment, conduct user beta testing with a small group of LINE users to gather feedback on usability, functionality, and overall satisfaction. Make necessary adjustments based on feedback.

Acceptance Criteria

The deliverables will be considered "accepted" if they meet the following criteria:

• Document progress and confirmation of key technical milestones.
• Confirmation of the following items:
• Technical compatibility with LINE’s APIs and mobile optimization.
• Robust security and privacy standards, including encryption, KYC/AML, and regulatory compliance with Japanese laws.
• User-friendly experience and interface design. 
• Acceptance testing and feedback collection and the implementation of a feedback mechanism for continuous improvement.
• Setting up of performance metrics, KPIs and monitoring and maintenance.

Evidence of Milestone Completion

To prove the completion of the milestone, we will submit the following:

• Executive summary overview of the DApp’s completion and its successful integration with LINE.
• Detailed technical and compliance documentation with complete, in-depth reports that validate the DApp’s technical functionality and regulatory compliance.
• Performance metrics and user feedback summary including quantitative and qualitative data to show adoption and satisfaction among early users.
• Future plans and maintenance outline evidencing a roadmap for improvements, demonstrating a commitment to sustaining and growing the DApp’s value.

Final Milestone: 2025/7~2026/1

Bring the ADA payment DApp project on LINE Bitmax to the beta stage, the final milestone involves building a functional prototype with core features, completing initial compliance checks, and preparing it for limited user testing. This milestone requires both technical development and foundational regulatory setup, laying the groundwork for eventual full deployment. 

Final Milestone: Beta Development and Deployment

• Core Development and Feature Completion
• Completing core features, such as wallet integration, ADA transaction functionality, basic user interface, and payment processing mechanisms. This also includes backend infrastructure to support transactions, along with security features to protect user data and transactions.

• Initial Compliance and Legal Review
• Compliance on Japanese financial regulations to ensure that the DApp meets initial compliance standards. This includes securing any provisional regulatory approvals required to operate the beta version in a limited test environment.

• User Interface (UI) Design and Basic UX Testing
• Developing an intuitive interface for the DApp and conducting initial user experience (UX) testing with a small group to gather feedback on usability, accessibility, and design. Any necessary adjustments based on UX feedback will be implemented.

• Beta Testing Preparation and Deployment
• Setting up a secure beta testing environment, selecting a test user group (e.g., internal users and a small group of Cardano community members in Japan), and implementing a monitoring system to track performance, bug reports, and user feedback.

• Marketing and Community Awareness for Beta Launch
• Developing a small-scale marketing plan to introduce the beta, including social media announcements, updates on Cardano community channels, and limited outreach to selected media. This initial communication aims to gather interest and attract feedback.

Acceptance Criteria

The deliverables will be considered "accepted" if they meet the following criteria:

• Document progress and confirmation of key technical milestones.
• Confirmation of the following items:
• Technical compatibility with LINE’s APIs and mobile optimization.
• Robust security and privacy standards, including encryption, KYC/AML, and regulatory compliance with Japanese laws.
• User-friendly experience and interface design. 
• Acceptance testing and feedback collection and the implementation of a feedback mechanism for continuous improvement.
• Setting up of performance metrics, KPIs and monitoring and maintenance.

Evidence of Milestone Completion

To prove the completion of the milestone, we will submit the following:

• Executive summary overview of the DApp’s completion and its successful integration with LINE.
• Detailed technical and compliance documentation with complete, in-depth reports that validate the DApp’s technical functionality and regulatory compliance.
• Performance metrics and user feedback summary including quantitative and qualitative data to show adoption and satisfaction among early users.
• Next steps of deployment and future plans.

[RESOURCES] Who is in the project team and what are their roles?

Our Collaborative Approach

The strategic planning, program direction, preparation of documents, navigation of the regulatory environment, influencer relations, coordination, and overcoming of obstacles project will be a tightly coordinated, assertive endeavor conducted by seasoned individuals and entities who will provide the connections and capabilities required to move the project forward and motivate the players involved.  

Key Collaborators and Their Contributions: 

• Nishimura & Asahi: One of Japan's largest and most prestigious law firms, Nishimura & Asahi is highly regarded for its depth in corporate and financial law and complex resolutions. The firm has been proactive in blockchain, fintech, and data privacy and advise on cryptocurrency regulations.

• LINE Bitmax: A cryptocurrency exchange that is leveraging the trust and massive user base of LINE, one of Japan’s most popular messaging and social apps.

• LINE Corporation: LINE Corporation is a leading Japanese tech company known primarily for its messaging app, LINE that has built a vast digital ecosystem including LINE Pay which plays a critical role in facilitating cashless payments and digital finance.

• Media / Industry Influencers: Insights and cooperation of cryptocurrency industry insiders in media with extensive in-depth knowledge, a strong network within Japan’s crypto ecosystem.

For the development of the Dapp we will proceed under advisement of leaders of the Cardano ecosystem regarding recommendations for organizations with a proven track record for developing decentralized applications that facilitate payments using ADA. In addition, we will engage with LINE for development collaboration and direction on meeting the needs of their requirements and strict compliance standards.

Additionally, we will engage community managers and leaders who are enthusiastic and have a stake in the success of Cardano in the Japan market and can assist in troubleshooting and navigating the Cardano ecosystem.

By leveraging the expertise and perspectives from industry leading players, we will drive this ambitious project forward to establish a landmark listing to drive the expansion and utilization of Cardano in the Japan market.

Please see the following for detailed accomplishments of each collaborator.

Shinnosuke Fukuoka

Partner, Nishimura & Asahi

Career:

• Specializes technology legal matters for blockchain, Web3, the Metaverse, and AI.
• Member of the Cabinet Office's "Human-Centered AI Social Principles Review Committee" and the Ministry of Economy, Trade and Industry's "AI and Data Contract Guidelines Review Committee."
• Agent for Mt.Gox's civil rehabilitation proceedings.
• Provides legal advice to cryptocurrency holders and regarding DAOs, NFTs, and the Metaverse.

• Author of books including: 
• "DAO Structure and Legal Practice" (Commercial Law)
• "Web3 Business and US Law - Application of Fund Transfer Laws to Crypto Assets"
• "Web3 Business and US Law (2) Applicability of Securities and Exchange Laws to Cryptocurrencies" 
• "Legal Issues in Generative AI - Copyright Edition", and "Laws and Issues in the Metaverse (Part 1) (Part 2)".

Yusuke Motoyanagi

Partner, Nishimura & Asahi

Career:

• Provides advisory on blockchain-related businesses since around 2017 including the design of token-related businesses both in Japan and overseas markets.
• Advisory on token-related transactions and regulatory advice on blockchain apllication.

• Articles: 
• "STO Legal and Practical Q&A" (Shojihomu, 2020)
• "Summary of Issues Regarding the Electronicization of Securities" Kinzai Houmu Jijo No. 2153 (2021) 
• "Utilization of Blockchain in Stock-Related Affairs" NBL No. 1168 (2020)
• "ICO (Initial Coin Offering) and Legal Issues" (Asahi Judiciary, Asahi Shimbun Website, "Law and Economic Journal" "Nishimura Asahi's Legal Outlook")
• "[Roundtable Discussion] Legal Considerations of Blockchain (Part 1) (Part 2)" NBL No. 1094, 1096 (2017) 
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Dai Mizui

Associate, Nishimura & Asahi

Career:

• Legal advisory on the construction of a platform for issuing and selling NFTs to domestic and overseas residents
• Legal advisory on the issuance and sale of NFTs by overseas issuers to domestic residents, and crowdfunding using NFTs • Legal advice for cryptocurrency exchange operators
• Legal advisory on incentive plans using tokens
• Legal advisory on prepaid payment for stablecoins
• Due diligence for overseas DAO corporations
• Legal advice on token-convertible financing

• Article: 
• "Responses to cases of cryptocurrency leakage due to impersonation" (Financial Legal Affairs No. 2134 (March 25, 2020 issue)) a
• Seminars:
• "Regulation of Stablecoins
• “Legal Issues on NFTs and the Metaverse"
• Others

Kaku Hirao

Partner, Nishimura & Asahi

Career:

• Appointed as a member of the Liberal Democratic Party Digital Society Promotion Headquarters' "web3 Project Team (formerly the NFT Policy Review Project Team)" working group.
• In charge of many cases related to the use of Web3 in the sports business.
• Involved in the formulation of the "Guidelines for packaged sales of NFTs using sports content and the co-location of secondary distribution markets" by the Sports Ecosystem Promotion Council. 
• Involved in the formulation of the "Guidelines for random sales of NFTs" by the same council and four blockchain industry organizations.

Nishimura & Asahi

• Website

Established in Tokyo in 1966, Nishimura & Asahi is the largest international law firm in Japan, with 20 locations around the world and more than 800 professionals. The firm boasts highly specialized practice groups work closely together to find answers and tackle unprecedented challenges, providing comprehensive, strategic solutions that meet the business needs of our clients regardless of field or complexity.

Nishimura & Asahi has established significant relationships with major players in the fintech and cryptocurrency sectors, including LINE Corporation, Rakuten Group, and Monex.

The firm advised Nomura Holdings, Inc. on restructuring the financial services business of LINE Securities Corporation, a joint venture with LINE Financial Corporation. This collaboration underscores the firm's role in facilitating strategic developments within LINE's financial services, including its cryptocurrency exchange, LINE Bitmax.

It has also provided legal counsel to Rakuten Group, Inc. during the reorganization of its fintech business. This engagement highlights Nishimura & Asahi's involvement in significant structural changes within Rakuten's financial services, encompassing areas like online banking, credit cards, securities, and insurance.

The firm advised Monex Group, Inc. and its subsidiary, Coincheck, Inc., during Coincheck's $1.3 billion SPAC merger with Thunder Bridge Capital Partners IV, Inc. This significant transaction highlights Nishimura & Asahi's expertise in complex financial and regulatory matters within the cryptocurrency industry.

Additionally, the firm has authored publications on cryptocurrency regulations, such as the "Getting the Deal Through: Cryptoassets & Blockchain 2023: Japan" article, which provides insights into Japan's legal landscape for crypto assets and blockchain technology. 

Through these engagements, Nishimura & Asahi has demonstrated its expertise in navigating complex legal landscapes in the fintech and cryptocurrency industries, supporting major corporations in their strategic initiatives and compliance efforts.

Fred Tanaka

Lightning Communications / Intersect Marketing WG

• · LinkedIn
• PR for IOHK, EMURGO, dcSpark, Paima, and other fintech, crypto, and Web3 clients.
• Partnerships with Dentsu East Japan, Publicis Groupe companies, and Monex for advisory and/or support on client/project services as well as handover introductions.
• Event coordination, direction, and participation in Nihon Keizai Shimbun events and marketing and Japan Broadband Association event planning and marketing.
• Implemented LINE Pay for Groupon Japan - negotiated terms, planned and executed marketing campaign (incl. TV, social, online media) and analyzed data for product placement planning.
• Planned and conducted LINE Stamp marketing program for Groupon Japan from creative, promotion, and measurements to increase awareness, develop engagement and loyalty, and drive traffic.
• Business development lead for Groupon Japan setting up partnerships with McDonald’s Japan, Burger King, and developing breakthrough with Domino’s Pizza and Wendy’s / First Kitchen.
• Media sponsor for TEAMZ event.

We have the firm contract of LINE though we cannot disclose the names now due to contractural and other considerations as follows below.

We understand how important it is to have transparency and detailed information about our collaborators, especially in a high-stakes and impactful partnership like the one with LINE. However, due to the sensitive nature of the discussions and the protocols we must follow with a company as strategically significant as LINE, we are required to maintain confidentiality until the final decision is made regarding our approval. This not only ensures that we respect LINE's confidentiality policies but also protects the integrity of our partnership efforts.

We are committed to sharing the full details of our collaboration as soon as we have official confirmation, and we remain dedicated to delivering the best possible outcomes for our project.

Others to be announced as well as industry influencers who will be supporting this initiative undisclosed or in an official (but truly effective) capacity in a Japanese context.

[BUDGET & COSTS] Please provide a cost breakdown of the proposed work and resources

Budget Breakdown

A budget of ₳1,890,000 the feasibility depends on the price of ADA going forward which we expect rise in the coming months. Here's a breakdown against the budget structure outlined earlier to estimate partner fees.:

LINE Corporation / LINE Bitmax (35%):

• Including listing fees for high-profile exchanges can vary widely however we have estimated the amount sufficient given our negotiation of favorable terms for Cardano.

Legal (19%):

• Project direction, management, regulatory compliance, negotiations, documentation, and legal review for a project involving a prominent exchange listing. Cardano has a record of listing on other exchanges and do not anticipate additional regulatory requirements.

Project Coordination (10%):

• Coordination and liaison with Project Catalyst and Cardano ecosystem stakeholders. Reporting and document production in English. Project management support and advisory.
• 
  

Development of Payment DApp Using ADA (15%):

• For a functional payment DApp on an established blockchain like Cardano utilizing an experienced team with a solid interest in ensuring the success of Cardano on the project. We will also have the support of LINE which will reduce development costs however given this is a first implementation for ADA payment in Japan we will need to determine how the beta testing goes and the need for additional features.
• 
  

Marketing & Awareness Campaign (15%):

• Funding for digital campaigns and some influencer marketing but will add to it from other areas as needed to scale campaigns strategically to ensure the budget goes further.
• 
  

PR for Listing (4 - 5%):

• Favorable rate for press releases, media outreach, and potentially a small event. Press conference costs handled under cost budget.

Expenses (1 - 2%)

• Press conference venue, ground transportation, meetings, etc.

[VALUE FOR MONEY] How does the cost of the project represent value for money for the Cardano ecosystem?

The cost of listing ADA on LINE Bitmax and securing a payment DApp on LINE will be viewed a value for investment for the Cardano ecosystem for the following reasons:

• LINE boasts approximately 90 million monthly active users in Japan. Listing ADA on Bitmax and creating a payment DApp within this ecosystem can significantly increase ADA's exposure and adoption among everyday users for greater market penetration.
• Introducing ADA to a popular exchange like Bitmax can boost its trading volume and liquidity in the Japanese market leading to more stable pricing environment, reduction in volatility, and market presence.
• Overcoming regulatory hurdles to get listed on a Japanese exchange sets a precedent for future listings, with the potential to influence other agencies in Japan and expand this to other countries in Asia.
• Being listed on an exchange with the recognition of the LINE brand enhances the credibility and visibility of ADA thereby creating a synergistic effect that could attract more institutional and retail investors.
• A payment DApp on LINE allows users to make transactions using ADA seamlessly promoting real-world utility and driving mainstream usage and needed transactions.
• This initiative will set the stage for overall growth and development of the Cardano ecosystem attracting developers to build on the platform.

Over the long-term we believe the following:

• The initial investment can lead to sustainable growth as more users and developers engage with the Cardano ecosystem.
• Expansion of adoption and usage will create positive network effects further enhancing the value and utility of ADA.
• A collaboration with an established, respected, and aspirational platform like LINE can open doors to more strategic partnerships and opportunities.