In a bid to combat market manipulation, Japan’s Financial Services Agency (FSA) and Securities Exchange Surveillance Commission (SESC) propose stricter oversight of crypto trading. Insider trading in digital assets will now be a criminal offense, punishable by sanctions or prosecution. 🇯🇵 📈
The proposed measure aims to deter fraudulent activities such as purchasing tokens before public listings or exploiting undisclosed vulnerabilities to gain financial advantage. This comes amidst Japan’s burgeoning cryptocurrency market, which has seen a surge in institutional participation, prompting regulatory changes. The SESC will investigate potential violations and impose penalties on those profiting from insider trading.
A dedicated working group, set up by the FSA, will determine specific instances of insider trading. Crypto exchanges will be subject to new guidelines designed to prevent such misconduct and protect investors.
This significant regulatory shift in Japan aligns with global efforts towards establishing transparent and credible cryptocurrency markets. It relocates crypto asset supervision from the Payment Services Act to a more comprehensive framework under the Financial Instruments and Exchange Act, granting full investor protection similar to traditional financial securities.