Japan is making big moves to regulate crypto, and it could change the game for investors and exchanges. The Financial Services Agency (FSA) is working on a plan to classify cryptocurrencies as financial products under the country’s Financial Instruments and Exchange Act. If this happens, crypto would fall under insider trading laws, just like stocks. A bill could be introduced as early as next year, signaling a major shift in how Japan treats digital assets.
A Global Shift in Crypto Regulation
Japan isn’t alone in rethinking its approach to crypto. In the U.S., the Commodity Futures Trading Commission (CFTC) recently announced that digital asset derivatives will now be treated like other financial instruments. Meanwhile, the Federal Deposit Insurance Corp. (FDIC) is making it easier for banks to engage with crypto as long as they properly manage risks. FDIC Acting Chairman Travis Hill called it a move away from the “flawed approach” of the last three years, hinting at a more open stance on crypto.
Banks Get More Freedom to Handle Crypto
Moreover, the Office of the Comptroller of the Currency (OCC) is also stepping in, making it clear that national banks and federal savings associations can explore crypto so long as they maintain strong risk controls. However, Acting Comptroller Rodney E. Hood emphasized that crypto-related activities should be treated no differently than traditional banking. This could mean fewer roadblocks for banks looking to dive into digital assets and blockchain.
What This Means for Crypto Investors
If Japan officially classifies crypto as a financial product, exchanges and investors could face stricter rules, especially around insider trading. While some see this as a necessary step to protect the market, others worry it could limit innovation and slow down crypto adoption. As regulators across the world step up their game, the industry is bracing for a new wave of rules that could reshape the future of digital assets.
