Japan is preparing for stricter regulations by banning insider trading in cryptocurrency, adopting a securities-based framework that will treat digital assets like traditional stocks. The Financial Services Agency (FSA) and the Securities and Exchange Surveillance Commission (SESC), leading this initiative, aim to increase oversight of crypto transactions. These legal amendments are scheduled to be presented in parliament by 2026. Under the new system, using non-public or privileged information for trading cryptocurrencies will become illegal. Offenders may face penalties ranging from fines to criminal charges based on severity. The SESC will have the authority to investigate suspected cases and impose additional surcharges on illegal profits.