Japan’s financial watchdog is preparing to change how cryptocurrencies are handled under the law, with plans to classify them as financial assets starting in 2026.
According to a local report published on March 30, the Financial Services Agency (FSA) intends to file a proposal to parliament next year. This would involve amending the country’s existing laws that cover financial instruments and exchanges.
The idea has been under discussion within the agency through internal working groups. If approved, the change would bring cryptocurrencies under the same legal framework that applies to financial products like stocks when it comes to insider trading.
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This means that using non-public information to trade crypto assets could be treated the same way as doing so with company shares, which is currently prohibited.
Despite this, digital assets are expected to be placed in a separate group from traditional securities such as bonds or equities. This distinction suggests that while crypto may be regulated more closely, it will not be treated exactly the same as other financial products.
Companies involved in cryptocurrency trading may be required to register with the FSA, even if they are not based in Japan. However, it remains unclear how the rules would apply to firms outside the country, especially if they do not have a local presence.
Lisa Gordon, chair of investment bank Cavendish, recently suggested taxing crypto and reducing stock fees in the United Kingdom. Why? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
