Japan has taken a significant step towards regulating its crypto market by approving a reform that brings crypto assets into the realm of financial instruments.
The amendment to the Financial Instruments and Exchange Act recognizes crypto assets as financial products, subjecting them to market discipline and oversight. This move is aimed at structuring the sector and bringing it closer to traditional finance standards.
One of the key measures included in the reform is a ban on insider trading, which will prevent purchases and sales based on non-public information. This rule has existed for traditional markets but is now being extended to crypto assets.