Japan plans to update financial laws to include cryptocurrencies under insider trading rules.
Proposed Legislative Changes
Next year, the Financial Services Agency (FSA) of Japan plans to submit a bill to revise the Financial Instruments and Exchange Act. This will allow cryptocurrencies to be classified as financial products subject to insider trading laws.
Challenges in Crypto Regulation
The FSA needs to decide which cryptocurrencies will fall under the new regulations. Differentiating between widely traded coins like Bitcoin and high-risk tokens may pose challenges. Regulation will be tailored based on the popularity and market behavior of cryptocurrencies.
Aiming for a Balanced Crypto Sphere
Japan is making strides to embrace the crypto industry, creating a digital currency-friendly environment. FSA's move to enhance oversight is part of a broader trend of pro-crypto actions by Japan's regulators and government.
Japan is aiming to create a robust regulatory mechanism in the crypto space while maintaining a balance between innovation and oversight.
