Financial Services Agency to Introduce Regulations Against Insider Trading in Cryptocurrencies, Reports Nikkei

It was revealed by Nikkei on the 15th that the Financial Services Agency (FSA) will introduce regulations to prohibit insider trading in cryptocurrencies (crypto assets). The regulations will explicitly ban trading based on unpublished information under the Financial Instruments and Exchange Act, and violators will be subject to penalties. By the end of the year, the FSA's working group plans to discuss the details and submit a bill to amend the Financial Instruments and Exchange Act in the regular session of the Diet in 2026. The Securities and Exchange Surveillance Commission will target these offenses for investigation, and suspicious transactions will be scrutinized by the Commission, which may lead to recommendations for penalties or criminal prosecution. Currently, the regulation of cryptocurrency exchanges relies on self-regulation by the Japan Cryptocurrency Trading Association and other industry groups.