Japan to Reclassify Crypto as Financial Products

Japan is set to officially recognize crypto assets as financial products under the Financial Instruments and Exchange Act, marking a significant shift in digital asset regulation.

According to a March 31 report by Nikkei, the Financial Services Agency (FSA) plans to submit a bill to parliament by 2026 to amend the legislation.

If approved, cryptocurrencies would be categorized similarly to traditional securities, making them subject to insider trading laws that prevent the misuse of non-public information for personal benefit.

Currently, digital assets operate with limited oversight, existing in a parallel regulatory space compared to mainstream financial markets.