#Japan Drafts Rules To Ban Crypto Insider #Trading


Japanese financial authorities are preparing amendments to explicitly prohibit #cryptocurrency insider trading. The Financial Services Agency plans to file regulatory changes by year-end.


Nikkei Asia reported Wednesday that violators would face financial penalties proportional to their illicit gains. The Securities and Exchange Surveillance Commission would gain authority to investigate suspected cases and recommend either surcharges or criminal referrals.


The FSA intends to submit amendments during next year's regular parliamentary session. Currently, Japan's Financial Instruments and Exchange Act excludes cryptocurrencies from insider trading provisions, leaving oversight primarily to industry self-regulation.


Defining actionable insider information for crypto presents unique challenges compared to traditional securities. Many tokens lack identifiable issuers, complicating determinations of who qualifies as an "insider," according to the report.


Japanese regulators have intensified oversight of the local crypto sector as it converges with traditional finance. Last week, Binance Japan announced a capital and business alliance with payment giant PayPay Corporation, with PayPay acquiring a 40% equity stake.

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October 15, 2025 at 12:42 PM