Japan Plans to Reclassify Cryptocurrencies as Financial Products
Japan's Financial Services Agency (FSA) plans to reclassify cryptocurrencies as financial products to address insider trading and strengthen regulatory oversight.
- The FSA aims to submit amendments to the Financial Instruments and Exchange Act (FIEA) by 2026.
- Current classification under the Payment Services Act has led to regulatory gaps, particularly concerning insider trading.
- Details on insider trading rules and penalties are not yet disclosed.
- The initiative responds to increased crypto adoption and rising fraudulent activities in Japan's market.