Japan to Implement Stricter Measures Against Crypto Insider Trading

Japan is taking concrete steps towards enhanced crypto market oversight by granting the Securities and Exchange Surveillance Commission (SESC) authority to investigate suspicious trades, impose penalties, and potentially refer severe violations for criminal prosecution. This move comes after the Financial Instruments and Exchange Act (FIEA) failed to include provisions addressing insider trading in crypto, resulting in a largely self-regulated approach through the Japan Virtual and Crypto Assets Exchange Association. The new framework aims to bring crypto regulations into alignment with Japan’s strict securities framework, closing this regulatory gap.