Japan has taken a significant step in regulating the cryptocurrency market. On April 10, the Japanese government cabinet approved an amendment to the Financial Instruments and Exchange Act, officially paving the way for crypto assets to be classified as “financial products.”
This development means that crypto assets, previously considered a “means of payment” under the Payment Services Act, will now be subject to a stricter regulatory framework.
The new regulations aim to increase transparency and investor protection in the cryptocurrency market. Accordingly, insider trading will be prohibited, and issuers will be required to report annually.
In addition, the official title of companies operating in the sector will change. The current definition of “crypto asset exchange operator” will be replaced with “crypto asset dealer”.
The new regulations also significantly increase penalties. Companies operating without registration will face sentences of up to 10 years in prison or fines ranging from 3 million to 10 million yen.
Japanese Finance Minister Satsuki Katayama emphasized that the change aims to ensure market fairness and transparency. Katayama stated that the new framework will increase investor confidence.
If the bill is also approved by the Japanese parliament, the regulation is expected to come into effect in 2027. Experts say this step could also set an important benchmark for global cryptocurrency regulations.
*This is not investment advice.