The Japanese Cabinet has approved a bill to categorize cryptocurrency as a financial product

BlockBeats News, April 10th, according to Nikkei News, the Japanese government approved a proposed amendment to the Financial Instruments and Exchange Act at a Cabinet meeting on the 10th. For the first time, this amendment will regulate cryptocurrency as a financial asset, prohibiting insider trading based on undisclosed information. It also requires cryptocurrency issuers to disclose information annually to enhance a healthy market environment. If this bill is passed in the current Diet session, it is expected to be implemented in the 2027 fiscal year at the earliest.

Prior to this, the Japanese Financial Services Agency mainly regulated cryptocurrency under the Payment Services Act based on its position as a "means of payment." However, in recent years, the use of cryptocurrency as an investment tool has been increasing, leading to its inclusion in the regulatory framework of the Financial Instruments and Exchange Act. In addition, the name of registered entities will be changed from "cryptocurrency exchange operators" to "cryptocurrency trading operators."

Furthermore, the penalties will be strengthened: for unregistered entities engaged in sales, the maximum imprisonment term will be increased from 3 years to 10 years, and the fine will be raised from the current maximum of 3 million yen to a maximum of 10 million yen. By imposing heavier penalties, the stance on investor protection will be further reinforced.