Japan passes crypto overhaul to bring digital assets under financial rules
Japan has passed revisions that move crypto assets under the Financial Instruments and Exchange Act, treating them more like traditional financial assets than payment tools under the Payment Services Act. The new framework adds insider trading restrictions, tighter oversight of crypto firms, and stronger user protections. Exchanges, issuers and other market participants will be barred from trading on undisclosed material information. Operating without registration will carry much harsher penalties, including longer prison terms and larger fines. Insider trading violations can also lead to prison, fines, or both. The changes reflect Japan’s broader effort to align crypto regulation with conventional financial-market rules, following a global trend of applying existing financial and tax frameworks to digital assets.
