Japan Could Make a Major Change To Crypto Trading Rules

Core Viewpoint - Japan's financial regulators are planning to reclassify the legal status of cryptocurrencies to combat insider trading, with a bill to be submitted to Parliament in 2026 [1][2][4] Regulatory Changes - The Financial Services Agency (FSA) aims to amend the classification of cryptocurrencies from "means of settlement" to financial products, differentiating them from securities [3][4] - This reclassification will enable the FSA to impose new restrictions and penalties for insider trading incidents [4][5] Future Initiatives - In 2026, the FSA will establish a new Crypto Bureau to address ongoing concerns related to the cryptocurrency market [1][4] - The initiative reflects Japan's commitment to tackling insider trading and could serve as a model for regulating Web3-related crimes [5]