Japan is getting ready to make a bold move in the world of digital asset regulation. The country’s Financial Services Agency (FSA) is cooking up a legal proposal that would place cryptocurrencies under insider trading laws by 2026, according to a March 31st report by Nikkei, Japan’s top financial news outlet.

Stricter Rules for the Crypto Wild West

The FSA plans to amend the Financial Instruments and Exchange Act, placing crypto under similar regulatory scrutiny as traditional securities. Translation? If you’re thinking of cashing in on secret information, think again—insider trading rules will soon apply to your favorite coins too.

However, crypto won’t be tossed into the same pot as stocks and bonds. Instead, it will get its own shiny new asset class, complete with special rules and a fresh side of bureaucracy. Companies offering crypto services—whether operating in Japan physically or not—will have to register with the FSA. And yes, how they plan to enforce this on foreign platforms remains a bit of a mystery (or perhaps a future anime plot twist).

The report also highlights that plenty of details still hang in the air. For instance, which coins exactly will fall under the new legislation? There’s a clear effort to distinguish between mainstream heavyweights like Bitcoin (BTC) and Ethereum (ETH) and… let’s say… less serious contenders like memecoins with barking ambitions.

Japan’s Crypto Strategy: Caution Meets Innovation

This regulatory update comes as Japan positions itself as one of the most crypto-friendly nations on the planet. Earlier this month, the FSA handed out its first-ever stablecoin trading license to SBI VC Trade, a subsidiary of Japanese finance giant SBI. The company is now preparing to list Circle’s USDC, giving stablecoins a formal place in Japan’s financial future.

In the same progressive spirit, Japan’s ruling Liberal Democratic Party is pushing to slash capital gains taxes on crypto from 55% to 20%—a move that would warm the cold wallets of Japanese investors. Lawmakers are even debating whether crypto should be officially recognized as its own asset class.

Final Take: Order + Innovation = Japan’s Crypto Master Plan?

Japan seems to be striking a balance that few other countries have dared to try: combining tight market oversight to prevent shady trading practices, with a welcoming attitude toward innovation and blockchain adoption.

If this legislation passes, it would mark yet another milestone in Asia’s race toward institutional crypto acceptance—with Japan showing that it’s possible to embrace the future of finance without letting it descend into chaos.

So, will Bitcoin be treated like insider-traded sushi stocks in Tokyo? Almost. But if done right, Japan might just be the first major economy to make crypto safely delicious.

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Madeline

I have been drawn to technology and science fiction since I was a child. Studying IT has drawn me to the world of cryptocurrencies, where I have been working since 2014. I have learned a lot since then. And I still have a lot to learn. What fascinates me most about them is that they connect so many worlds together and the possibility of free choice. Without limits.