Japan’s Financial Services Agency (FSA) is set to revise the Financial Instruments and Exchange Act to officially recognize crypto assets as financial products, according to a report by Nikkei on Sunday.
Legal Recognition and Insider Trading Regulations
The revision will place crypto assets under the same legal framework as traditional financial products. One key aspect of the reform includes implementing insider trading restrictions, which would prohibit buying and selling based on undisclosed internal information related to cryptocurrencies.
Proposed Timeline for Legislative Action
The FSA plans to submit a bill to the Japanese parliament as early as 2026, aiming to amend the Financial Instruments and Exchange Act. This move is expected to further regulate the crypto market and provide clearer guidelines for its integration into Japan’s financial system.
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