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Japan’s finance regulator is set to redefine the crypto landscape by classifying cryptocurrencies as financial products by 2026. The Financial Services Agency (FSA) aims to amend the Financial Instruments and Exchange Act showcasing a robust move towards integrating crypto firmly within the nation’s financial framework. Plans to submit the bill to parliament next year are underway following comprehensive internal evaluations reported by Nikkei.
With this regulatory shift cryptocurrencies would fall under stringent insider trading laws similar to those governing stocks and other financial instruments. This classification not only enhances trading transparency but also extends the regulatory umbrella ensuring cryptocurrencies are in a league distinct from securities like stocks and bonds.
This strategic move aligns with Japan’s broader embrace of cryptocurrency exemplified by recent pro-crypto reforms and the issuance of a stablecoin license to SBI VC Trade. As Japan leads with progressive policies the global crypto market watches keenly setting a precedent for future regulatory frameworks worldwide.
