Japan Moves to Tame Crypto Wild West with Financial Product Classification and Insider Trading Ban
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Japan is taking decisive steps to bring its cryptocurrency market in line with traditional finance.
The Financial Services Agency (FSA) has unveiled a plan to classify digital assets as “financial products,” a move that would subject them to the same stringent rules governing stocks and bonds. A key component of the proposal is a first-ever ban on crypto insider trading.
Under the new rules, exchanges must provide comprehensive disclosures on the 105 approved tokens, and individuals with privileged information would be barred from trading.
Coupled with a proposed tax cut to a flat 20% on gains, the reforms aim to boost market integrity and investor confidence. The legislation is targeted for a 2026 parliamentary session.
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