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Japan Brings Crypto Under Financial Market Rules

Japan’s parliament has passed crypto reforms that classify digital assets as financial assets and introduce stricter rules for exchanges and market participants.

Financial news writerUpdated: 0 ViewsSource CoinTelegraph

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Japan Brings Crypto Under Financial Market Rules
Image Source: CoinTelegraph

Japan’s parliament has passed crypto reforms that classify digital assets as financial assets and introduce stricter rules for exchanges and market participants.

Japan Brings Crypto Under Financial Market Rules

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Written by

Helen Partz

staff writer

Reviewed by

Yohan Yun

staff writer

Written by

Helen Partz

staff writer

Reviewed by

Yohan Yun

staff writer

Japan passes crypto overhaul to bring digital assets under financial rules

Latest News

Published

Jul 15, 2026

Japan’s revised Financial Instruments and Exchange Act introduces crypto insider trading rules, tougher penalties and new oversight requirements for crypto businesses.

Japan is set to reshape its cryptocurrency market with stricter trading rules, stronger user protections and a framework closer to traditional finance.

The country’s parliament on Wednesday passed revisions that classify crypto assets as financial assets under Japan’s Financial Instruments and Exchange Act (FIEA),

according

to a report by local news agency Nikkei.

The changes move Japan’s crypto regulation away from the Payment Services Act (PSA), which treated digital assets primarily as payment instruments, and introduce insider trading rules and stronger oversight for crypto businesses.

The overhaul marks one of Japan’s biggest shifts in digital asset policy as regulators worldwide continue debating how crypto should fit within existing financial systems.

Crypto exchanges face tougher oversight

Under the revised framework, crypto businesses operating in Japan will face additional compliance obligations designed to improve market integrity and protect users.

The updated rules prohibit issuers, exchanges and other market participants from trading while aware of undisclosed material information, creating insider trading restrictions similar to those applied in traditional finance (TradFi).

Source:

Reuters Legal

The revised rules increase penalties for companies operating without registration, reportedly raising the maximum prison sentence from three years to 10 years and increasing fines from around 3 million Japanese yen ($19,000) to around 10 million yen.

Related:

Japan stablecoin payments advance with Lawson trial, Netstars launch

Insider trading violations could result in penalties of up to five years in prison, fines of up to 5 million yen, or both, the report notes.

Global regulators align crypto with financial rules

In line with Japan’s move to bring crypto closer to TradFi, the revised law also reportedly changes the terminology for registered businesses from “cryptocurrency exchange” to “cryptocurrency trading company.” The change reflects the broader financial role regulators now assign to the sector.

Japan’s crypto regulation developments reflect a broader global trend of regulators applying existing financial frameworks to crypto rather than treating the sector as entirely separate.

South Africa’s tax authority published draft guidance in early July outlining how

existing tax rules apply to crypto assets

, while US regulators continue clarifying how existing securities and commodities laws apply to digital assets.

Magazine:

Thai scammer’s $122M wallet, Japan embraces crypto credit: Asia Express

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Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s

Editorial Policy

and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

Japan

Law

Policy

Cryptocurrencies

Regulation

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Disclaimer

Original YayaNews editorial coverage, published for informational purposes.

This article is sourced from CoinTelegraph. It is for informational purposes only and does not constitute investment advice.

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