Japan's government has approved amendments to its Financial Instruments and Exchange Act (FIEA), which will subject a portion of the crypto market to stricter regulatory oversight.
The changes aim to bring digital assets closer to traditional financial instruments, with a focus on transparency, disclosure, and investor protection. The new framework includes mandatory annual reports for companies, stricter compliance requirements, and penalties for unregistered businesses.
One major aspect of the reform is the prohibition of insider trading in crypto assets, which will put crypto at par with conventional securities markets. The classification of businesses may also change, with firms being defined as crypto asset dealers rather than exchange operators.