Japan Classifies Crypto as Financial Instrument
Japan has reclassified cryptocurrency as a financial instrument under its Financial Instruments and Exchange Act. The move brings crypto assets under the same oversight structure as equities and other traditional securities, reflecting the growing role of institutional investors in the market.
The updated framework acknowledges the shift by introducing restrictions on insider trading and requiring crypto issuers to publish annual disclosures. Penalties for operating unregistered exchanges have also been increased under the amended legislation.
The changes aim to bring crypto market conduct in line with standards applied to Japan's stock market, according to Finance Minister Satsuki Katayama. This includes a ban on insider trading and other transactions executed on the basis of undisclosed information.