Japan is changing the rules for Cryptocurrencies! It will soon be presented to the Japanese Parliament.

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The Japanese Financial Services Agency (FSA) is preparing to amend the Financial Instruments and Exchange Act to officially classify cryptocurrency assets as financial products and to introduce new insider trading regulations.

The proposed changes aim to prevent unfair trading practices in the rapidly evolving cryptocurrency market and to enhance investor protection.

According to the FSA, the revised regulations will prohibit individuals from trading crypto assets based on undisclosed insider information, reflecting the regulations applicable to traditional financial markets. This move reflects the increasing recognition of cryptocurrencies as mainstream investment vehicles and aims to strengthen oversight amidst rising market participation.

In order to develop a comprehensive framework, the FSA has been conducting closed working sessions with experts to assess the current regulatory structure and identify areas for improvement since October 2024. The draft is expected to be presented to the Japanese National Diet by 2026.

Japan has been at the forefront of cryptocurrency regulation by implementing strict exchange licensing requirements following high-profile hacking attacks in previous years.

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