Japan to Classify Cryptocurrencies as Financial Products, Aiming for Stricter Regulations by 2026
March 31, 2025
The revisions will impose stricter compliance measures, including prohibitions on insider trading and enhanced oversight of cryptocurrency exchanges.
The outcome of Japan's crypto law and its implications for Bitcoin remain uncertain, with the next few months critical for determining market direction and regulatory impacts.
Under the new regulations, companies offering cryptocurrencies will need to register with the FSA, regardless of their operational base.
This regulatory shift aligns with Japan's pro-crypto stance, which includes recent license approvals for companies dealing with stablecoins.
Japan's Financial Services Agency (FSA) is moving to classify cryptocurrencies as financial products under the Financial Instruments and Exchange Act.
The FDIC has recently issued new guidance allowing financial institutions to engage in crypto activities without prior approval, provided they manage risks appropriately.
As the regulatory landscape evolves, high-profile crypto investors are facing increased security threats, prompting a focus on personal safety within the community.
In a notable development, Japan issued its first license for stablecoin transactions to SBI VC Trade, signaling a significant step in the country's crypto regulatory framework.
This legislative amendment aims to include cryptocurrencies under insider trading laws, with a bill expected to be presented to Japan's parliament as early as 2026.
The proposed changes are intended to enhance regulatory oversight of Japan's growing crypto ecosystem, which has seen a rise in adoption and fraudulent activities.
This initiative is part of a broader regulatory shift towards digital assets, reflecting increasing scrutiny in global finance.
Details regarding the proposed insider trading rules, including definitions of insider information specific to cryptocurrencies and potential penalties for violations, are still pending.
Summary based on 6 sources
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Sources

PYMNTS.com • Mar 30, 2025
Japan Reportedly Could Place Crypto Under Insider Trading Rules | PYMNTS.com
Cointelegraph • Mar 31, 2025
Japan to classify cryptocurrencies as financial products: Report
The Block • Mar 31, 2025
Japan mulls officially classifying crypto as financial product: Nikkei
Coinfomania • Mar 31, 2025
Japan’s 2026 Crypto Law Set to Shake Markets – Will Bitcoin Legal Status Update Smash $85K?