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Japan to Classify Cryptocurrencies as Financial Products
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According to a report by Nikkei, the country’s Financial Services Agency (FSA) is looking to change its financial laws as early as 2026.
The goal is to bring cryptocurrencies under insider trading rules, aligning them with other financial assets like stocks.
Japan Moves to Tighten Crypto Rules with New Bill
The FSA aims to submit a bill to parliament next year to revise the Financial Instruments and Exchange Act. This move comes after internal discussions within the agency, signaling a clear shift toward tightening regulations around crypto. If the proposed changes pass, cryptocurrencies could be subject to insider trading laws, making trades based on non-public information illegal. Currently, insider trading laws apply to stocks and bonds, but cryptocurrencies may be treated in a separate category.
BREAKING:
JAPAN TO LEGALLY CLASSIFY #BITCOIN AND CRYPTO AS FINANCIAL PRODUCTS
LETS GO
pic.twitter.com/q7zNbs6jQJ
— Crypto Rover (@rovercrc) March 30, 2025
Though details are still being finalized, the change would require companies dealing in crypto to register with the FSA. This would apply even if the company operates outside Japan, though enforcement against foreign companies remains unclear. The law’s application to overseas entities is still a bit of a gray area, and how Japan plans to handle international companies is yet to be determined.
Regulating Crypto in Japan: A Tough Nut to Crack
One of the challenges that the FSA will face is deciding which cryptocurrencies fall under the new regulations. The distinction between widely traded coins like Bitcoin and high-risk, speculative tokens such as memecoins could be tricky. Cryptocurrencies are diverse, and their regulation will likely vary depending on their popularity and market behavior. For now, Japan’s regulators are still working through the details, which could be a tough nut to crack.
This move comes at a time when Japan is making strides to embrace the crypto industry, creating an environment that’s friendlier to digital currencies. The FSA’s decision to put cryptocurrencies under its watchful eye is part of a broader trend of pro-crypto actions by Japan’s regulators and government. Japan is looking to strike a balance between fostering innovation in the crypto space while ensuring proper oversight.
Disclaimer
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March 31, 2025 at 09:01AM
March 31, 2025 at 09:06AM
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