Japan, cryptocurrencyIt is preparing for regulations that will clearly prohibit insider trading, in other words, insider trading. According to Nikkei, the financial authority will strengthen the competent authority, similar to the regime in the securities markets, and impose profit-proportional fines for violations and judicial proceedings in serious cases. Frame, cryptocurrency Financial Instruments and Exchange Act (FIEA) and to place the weak surveillance on an institutional basis. It is planned that the work on the principles will be completed by the end of 2025 and turned into a legislative proposal in 2026.
Scope of the Draft and Enforcement Architecture
The plan includes a clear prohibition of buying and selling based on non-public information about cryptocurrencies. Securities and Exchange Surveillance Commission (SESC), known for securities supervision, will investigate suspicious transactions; It will be able to recommend “surcharge” type fines calculated based on ill-gotten gains and to submit files for criminal investigation in case of serious violations. The limited surveillance tools of the JVCEA, the industry’s self-regulatory arm, created a need for a centralized enforcement architecture.
The publicly available definition, which is missing in the legislation, is corrected by the draft. First of all, the insider trading ban for crypto money will be clearly defined, and then the implementation details will be determined with secondary regulations. The move to FIEA coverage will bring cryptocurrency closer to the same disclosure and market abuse standards as traditional financial products. The chart, previously reported by Reuters, indicates the FSA’s target of submitting the amendment proposal to parliament in 2026.
Calendar is Running
Delegation of authority and definitional clarification are intended to deter sudden price movements triggered by pre-listing leaks. The issue of “issuer uncertainty”, which creates a lack of experience, stands out as a topic that will be discussed in expert working groups, especially in decentralized tokens. The goal is to establish active surveillance by the public authority, rather than control limited to the internal procedures of the stock exchanges.
The regulatory step has the potential to increase institutional trust in the Japanese cryptocurrency market, where the number of users has increased exponentially in the last five years. Disciplining the risk of market abuse when considered together with the market infrastructure and tax framework; It can create transparency in stock market transactions, equal access to information and a threshold increase in investor protection. As the calendar becomes clearer, it is expected that the internal control sets in local stock exchanges’ compliance investments and listing processes will tighten.
