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Nope. A sword that turned up unregistered in Japan, so illegal. Many don't bother with the laborious process of trying to get them registered, so they cut them and sell the koshirae. Many dealers find swords in their wanderings and also cut them. They are mostly under the impression that all military swords are illegal, and there is not much info about Gendaito and the fact that they can be legalized.
Sometimes it's the police that cut them. Either way...it's modern done.

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