Japan's cabinet has, for the first time, included crypto assets as regulated financial products

Japan to Regulate Crypto as Financial Products, Bans Insider Trading

Japan is taking a major step in crypto regulation. The government approved a revised Financial Instruments and Exchange Act on April 10th, bringing crypto assets under the same regulatory umbrella as traditional financial products. The new rules ban insider trading using non-public information.

Crypto issuers will be required to disclose information once a year to improve market transparency. If passed in the current parliamentary session, the law is expected to take effect in fiscal year 2027.

Japan's FSA previously treated crypto as a payment method under the Payment Services Act. But with rising investment use, it's now shifting to the Financial Instruments and Exchange Act. Registered operators will be renamed from "crypto asset exchange providers" to "crypto asset trading providers." Penalties are also getting tougher. Unlicensed sales will carry prison terms of up to 10 years, up from 3 years, and fines of up to 10 million yen, up from 3 million yen.