Japan Moves to Criminalize Cryptocurrency Insider Trading
- Japan’s Financial Services Agency (FSA) and Securities and Exchange Surveillance Commission (SESC) are drafting new rules to ban cryptocurrency insider trading.
- Proposed changes will be submitted to parliament in 2026, aiming to align crypto assets with traditional securities laws.
- Offenders could face fines or criminal charges for trading based on non-public information, such as before an exchange listing announcement.
- The FSA plans to establish a working group by the end of this year to define insider trading actions related to cryptocurrencies.
- As of August 2025, Japan has over 7.8 million active cryptocurrency trading accounts, nearly four times the amount from five years prior.
This regulatory initiative aims to enhance transparency and investor protection in Japan’s growing cryptocurrency market, which has seen significant institutional interest recently.
The proposed framework represents a critical step towards establishing a reliable crypto market in Japan, aligning it with global standards as it transitions from the Payment Services Act to the FIEA. (Source)
