YEREVAN (CoinChapter.com) —
Japan’s Financial Services Agency (FSA) is planning a law revision that would classify cryptocurrencies as financial products by 2026, according to a March 30 report from Nikkei. This change would bring Japan cryptocurrencies under insider trading rules, which already apply to stocks and other traditional assets.
The FSA aims to submit a bill to revise the Financial Instruments and Exchange Act to the Japanese Parliament in 2025. The decision comes after internal study groups reviewed the legal framework for crypto laws in Japan.
Cryptocurrencies would not be treated the same as stocks or bonds. However, they would be covered under insider trading rules, restricting trades made with non-public information.
FSA Plans to Enforce New Crypto Rules on All Companies
If the FSA proposal becomes law, all companies offering cryptocurrencies would need to register with the regulator. The FSA intends to apply these rules to any entity offering services in Japan, including those based outside the country.
However, it remains unclear how these laws will apply to foreign platforms or how enforcement will work. Nikkei did not specify how Japan plans to regulate overseas firms that offer access to Japan cryptocurrencies.
The report also did not confirm which specific cryptocurrencies would fall under these rules. There is no guidance yet on how authorities will treat major assets like Bitcoin (BTC) and Ether (ETH) compared to high-risk assets such as memecoins.
Insider Trading Rules to Cover Digital Assets
The FSA’s plan includes placing cryptocurrencies under insider trading rules, similar to those for traditional financial products. The regulator expects this move to help establish legal clarity for crypto laws in Japan.
The FSA is located in central Tokyo, near the Ministry of Finance. The agency’s role has expanded over the past year as Japan updates its stance on digital assets.
In early 2024, reports said the FSA might lift its ban on crypto-based exchange-traded funds (ETFs). This would align Japan with Hong Kong, which approved crypto ETFs in April 2024.
Japan Cuts Crypto Capital Gains Tax, Grants First Stablecoin License
The ruling Liberal Democratic Party has supported changes to reduce crypto capital gains tax. The rate would drop from 55% to 20%, treating cryptocurrencies as a separate asset class within financial products.
In March 2024, the FSA approved SBI VC Trade to offer stablecoins in Japan. The company, part of the SBI Group, plans to support Circle’s USDC. This is the first license of its kind under the updated crypto laws in Japan.
