The Nikkei reported that the Japanese government approved an amendment to the 'Financial Instruments and Exchange Act' at a cabinet meeting on the 10th, officially defining cryptocurrencies as 'financial products' and incorporating them into the institutional framework. The purpose is to move away from the existing method of managing cryptocurrencies as a means of payment under the 'Payment Services Act' and instead apply measures such as prohibiting insider trading using undisclosed information and requiring issuers to disclose information once a year. Accordingly, the name of related businesses will be changed from 'crypto-asset exchange service provider' to 'crypto-asset trading service provider'. Investor protection measures will be significantly strengthened, including increasing penalties for unregistered operations to imprisonment for up to 10 years or fines ranging from 3 million yen to 10 million yen. Finance Minister Satsuki Katayama emphasized that this amendment will ensure market fairness and transparency, and the bill is expected to take effect as early as 2027 if passed by parliament.
