Japan’s regulator will equate cryptocurrencies with financial products

The FSA will propose relevant amendments to parliament in 2026

31.03.2025 - 13:40

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3 min

What’s new? Japan’s Financial Services Agency (FSA) intends to officially classify crypto assets as financial products as part of a new approach to regulating insider trading of cryptocurrencies. The FSA is scheduled to propose amendments to the Financial Instruments and Exchange Act to parliament in 2026 after a closed expert analysis of the current legal framework.

Material by Nikkei

What else is known? Japan currently classifies cryptocurrencies as a means of settlement under the Payment Services Act. By changing the rules, the regulator aims to tighten control over local crypto service providers due to the increasing cases of fraud.

Classifying cryptocurrency as a financial product will mean that not only exchanges but also companies raising crypto investments will have to register with financial supervisory authorities.

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According to Nikkei reporters, the upcoming bill is likely to separate crypto assets into a category distinct from securities such as stocks and bonds. At the same time, oversight of insider trading will be identical for all financial products.

The FSA expects the new rules to apply to all companies serving Japanese citizens in all locations around the world, but it remains unclear how the agency plans to apply the rules to organizations overseas.