How Japan’s Crypto Insider Trading Ban Could Reshape Global Policy

Core Viewpoint - Japan is set to implement new regulations to curb crypto insider trading, aiming to enhance market integrity and potentially influence global standards for digital asset oversight [1][2]. Regulatory Framework - The Financial Services Agency plans to extend securities-style rules under the Financial Instruments and Exchange Act to digital assets, allowing the Securities and Exchange Surveillance Commission (SESC) to investigate suspicious crypto trades and recommend penalties [2]. - The new framework is expected to be finalized this year and submitted to parliament by 2026 [1]. Global Impact - The regulatory shift in Japan could accelerate the alignment of global market integrity standards and encourage other jurisdictions to adopt similar measures [2]. - Cessiah Lopez from Superteam UK noted that Japan's actions may pressure the U.S. to establish a clearer federal framework regarding crypto insider trading [3]. Market Integrity - Insider trading undermines the integrity of financial systems and the crypto community's goal of democratizing wealth access, according to industry experts [4]. - John Park from Arbitrum Foundation emphasized that Japan's legislative clarity could create a gravitational pull for compliance teams, aligning operational norms for market integrity in regions like Brussels and Tokyo [5].