Japan Tightens Crypto Regulations, Classifying It as Financial Instrument

Japan is taking a significant step in regulating its cryptocurrency market by classifying cryptocurrencies as financial instruments under the Financial Instruments and Exchange Act (FIEA). This reclassification aims to tighten insider trading rules by aligning with existing regulations for stocks and bonds. The move comes after Japan’s Payment Services Act has not adequately addressed cryptocurrencies’ potential for abuse, particularly related to insider trading.