Japan Moves to Close Major Regulatory Gap with Crypto Insider Trading Ban

A major regulatory void in Japan’s cryptocurrency market is set to be filled. The Financial Services Agency has announced plans to introduce a ban on insider trading for digital assets, a practice that is currently not illegal under the country’s Financial Instruments and Exchange Act.

According to Nikkei Asia, the new amendments will empower regulators to investigate and penalize traders who profit from non-public information. This move signifies a pivotal shift from the current system of industry self-regulation to formal, enforceable law.

However, regulators acknowledge the challenge of defining “insiders” in a decentralized market where many tokens lack a clear issuing entity.

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