Japan’s financial audit authority FSA (Financial Services Authority) is working on an important regulation move in order to prevent illegal activities in the crypto currency market, such as internal information trade. Instead of classifying crypto currencies as a “payment tool içinde in the current legal framework, the institution evaluates the inclusion of the category of“ Financial Product ”category. With this change, it is aimed to establish a more strict surveillance and supervisory mechanism in the market. The changes in the agenda of FSA are seen as a serious step towards increasing the security of investors and market transparency.
Internal information trade is on the agenda
Increased crypto currency investments in Japan bring various risks. In particular, transactions based on information from inside have become a serious threat to both individual investors and the general of the market. FSA states that existing regulations are insufficient to prevent such activities and predict that the new classification can be a solution to this problem.
The Payment Services Act, which is currently in force, defines crypto currencies as a means of payment only. However, this limited frame does not offer sufficient protection against abuses that may arise in investment purposes. FSA is preparing to change the financial vehicles and stock market laws in order to close this gap. The target is to put crypto currencies on a more comprehensive legal basis and to bring deterrent measures for risky transactions such as information trade from inside.
Studies on the new legal definition continues
FSA continues its preparations for the amendment of the law, but the details of the regulation have not yet become clear. In particular, how the concept of information will be defined, which activities will be covered by the crime and what kind of sanctions will be applied against such violations are now on the table. Detailed analyzes are made in the closed sessions attended by experts, while the arrangements are planned to be submitted to the Japanese parliament at the beginning of 2026.
The new regulation will not only prevent internal information trade, but also aim to create a general transparency and accountability environment in the crypto currency market. Thanks to the financial product classification, FSA’s audit powers will expand and thus the fight against fraud cases will become more effective. This initiative is not only interested in local investors, but also the international actors interested in the crypto currency market.
Future regulations are expected to eliminate the uncertainty that has been felt for a long time in the market. The steps of FSA are evaluated in line with the goal of increasing investor confidence and bringing the market to a more institutional structure.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
