Japan’s financial watchdog is preparing to change how cryptocurrencies are handled under the law, with plans to classify them as financial assets starting in 2026.
According to a local report published on March 30, the Financial Services Agency (FSA) intends to file a proposal to parliament next year. This would involve amending the country’s existing laws that cover financial instruments and exchanges.
The idea has been under discussion within the agency through internal working groups. If approved, the change would bring cryptocurrencies under the same legal framework that applies to financial products like stocks when it comes to insider trading.
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This means that using non-public information to trade crypto assets could be treated the same way as doing so with company shares, which is currently prohibited.
Despite this, digital assets are expected to be placed in a separate group from traditional securities such as bonds or equities. This distinction suggests that while crypto may be regulated more closely, it will not be treated exactly the same as other financial products.
Companies involved in cryptocurrency trading may be required to register with the FSA, even if they are not based in Japan. However, it remains unclear how the rules would apply to firms outside the country, especially if they do not have a local presence.
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