Japan Crypto: Government Sets Ground for New Era in Sector with Financial Reclassification

• Crypto reclassification in Japan.
• Regulation against insider trading.
• Strengthening financial supervision.

Japan is signaling a significant regulatory change in the cryptocurrency market. According to recent reports, da Nikkei media, Japan's Financial Services Agency (FSA) is considering reclassifying digital assets, seeking to bring them under the same legislation as traditional financial instruments.

It is worth noting that this measure by the sector regulator in Japan aims to strengthen supervision and combat insider trading. If approved, the new rules could have significant implications for the cryptocurrency market in the country.

According to the publication, the proposal under analysis involves revising the Financial Instruments and Exchange Act (FIEA), Japan's main legislation responsible for governing securities. Currently, cryptocurrencies are classified under the Payment Services Act, which defines them as means of settlement.

The FSA is expected to submit a legislative proposal to parliament by 2026. This regulatory change could have a significant impact on the cryptocurrency market, both in Japan and globally, by setting a new regulatory standard for digital assets.

Crypto in Japan: Government Introduces Significant Changes for Exchanges and Stablecoins

The Japanese government has taken a significant step towards modernizing its regulatory framework in the cryptocurrency sector. Recently , a bill was approved that modifies the Payment Services Law, establishing new rules that facilitate the operation of stablecoins and brokerages, aiming at a more open and secure market.

The move, proposed by Japan’s Financial Services Agency (FSA), aims to make the trading environment more accessible to businesses without sacrificing security. The legislation introduces a new category of companies that can act as intermediaries in cryptocurrency transactions without necessarily holding users’ funds, setting them apart from traditional brokerages.

This change eliminates the need for such companies to register as full-fledged cryptocurrency exchanges, subject to stricter regulations, paving the way for a more flexible market.