Svmuu News According to Nikkei News, the Japanese government passed an amendment to the Financial Instruments and Exchange Act at a cabinet meeting on the 10th. This amendment, for the first time, regulates crypto assets (virtual currencies) as financial products and prohibits activities such as insider trading based on undisclosed information. It also requires cryptocurrency issuers to conduct annual information disclosure to foster a healthy market environment. If the bill passes the current Diet session, it is expected to be implemented as early as fiscal year 2027.
Previously, Japan's Financial Services Agency (FSA) primarily regulated cryptocurrencies based on their positioning "as a means of payment" under the Payment Services Act. However, in recent years, the use of cryptocurrencies as investment tools has increased, leading to their inclusion within the regulatory framework of the Financial Instruments and Exchange Act. Furthermore, the name of registered entities will change from "Crypto Asset Exchange Service Providers" to "Crypto Asset Trading Service Providers."
Simultaneously, penalties will be strengthened: for entities engaging in sales without registration, the maximum prison sentence will increase from 3 years to 10 years, and the maximum fine will rise from the current 3 million yen to 10 million yen. By increasing penalties, the government aims to further strengthen its stance on investor protection.