Japan Declares War on Crypto Manipulation: Inside the Groundbreaking Insider Trading Crackdown
Tokyo tightens the screws—financial regulators unveil sweeping reforms targeting market manipulation in digital assets.
The Regulatory Hammer Drops
Japan's Financial Services Agency fires the latest salvo in its battle against crypto market abuse. New surveillance protocols and enhanced reporting requirements take aim at sophisticated trading schemes that have long plagued digital asset markets.
Global Ripples Expected
As one of the world's most regulated crypto jurisdictions, Japan's moves could set precedent for other nations grappling with similar challenges. The measures target everything from wash trading to coordinated pump-and-dump operations.
Market participants brace for impact—because nothing says 'market integrity' like government paperwork and compliance costs. The eternal dance continues: regulators build taller fences while traders find longer ladders.
With Limited Experience, Japan Struggles To Define Crypto Insider Trading
Defining insider trading in crypto is easier said than done. Japan is still new to handling insider trading in the crypto space, especially compared to stocks and bonds, which have clearer rules around events like mergers or disasters.
According to the article, even the European Union’s (EU) crypto rules introduced in 2024 don’t clearly define what counts as an insider activity.
Meanwhile, crypto in Japan is booming. In August this year, Japan had 7.88 million active crypto accounts, a 4x growth compared to five years ago.
Originally, regulators treated crypto as a payment tool and regulated it under the Payment Services Act. But now, with more people using it for investment, Japan plans to shift oversight to FIEA, which is more focused on protecting investors and ensuring market transparency.
Globally however, insider trading and fraud in crypto have become more common, with the International Organization of Securities Commissions (IOSCO) calling for stronger rules to prevent market abuse after a case in 2022, where Coinbase executives leaked sensitive information to their friends and family members.
South Korea and the EU have already implemented stronger rules, and Japan is preparing to follow in their footsteps.
Trump Tariff Sparks Crypto Crash: Whale Mints Million In Minutes Sparking Insider Trading Concerns
10 October 2025 was a bloodbath in the crypto landscape. Many people lost their fortunes with reportedly 250 wallets losing their crypto millionaire status. However, one wallet minted millions, sparking insider trading speculations.
The whale placed a suspiciously well timed BTC short worth $750 million on
.cwp-coin-chart svg path {
stroke-width: 0.65 !important;
}
.cwp-coin-widget-container .cwp-graph-container.positive svg path:nth-of-type(2) {
stroke: #008868 !important;
}
.cwp-coin-widget-container .cwp-coin-trend.positive {
color: #008868 !important;
background-color: transparent !important;
}
.cwp-coin-widget-container .cwp-coin-popup-holder .cwp-coin-trend.positive {
border: 1px solid #008868;
border-radius: 3px;
}
.cwp-coin-widget-container .cwp-coin-trend.positive::before {
border-bottom: 4px solid #008868 !important;
}
.cwp-coin-widget-container .cwp-coin-price-holder .cwp-coin-trend-holder .cwp-trend {
background-color: transparent !important;
}
.cwp-coin-widget-container .cwp-graph-container.negative svg path:nth-of-type(2) {
stroke: #A90C0C !important;
}
.cwp-coin-widget-container .cwp-coin-popup-holder .cwp-coin-trend.negative {
border: 1px solid #A90C0C;
border-radius: 3px;
}
.cwp-coin-widget-container .cwp-coin-trend.negative {
color: #A90C0C !important;
background-color: transparent !important;
}
.cwp-coin-widget-container .cwp-coin-trend.negative::before {
border-top: 4px solid #A90C0C !important;
}
Hyperliquid
HYPE8
$40.95
2.04%Hyperliquid
HYPE8
Price
$40.95
2.04% /24h
Volume in 24h
$1.03B
Price 7d
// Make SVG responsive
jQuery(document).ready(function($) {
var svg = $('.cwp-graph-container svg').last();
if (svg.length) {
var originalWidth = svg.attr('width') || '160';
var originalHeight = svg.attr('height') || '40';
if (!svg.attr('viewBox')) {
svg.attr('viewBox', '0 0 ' + originalWidth + ' ' + originalHeight);
}
svg.removeAttr('width').removeAttr('height');
svg.css({'width': '100%', 'height': '100%'});
svg.attr('preserveAspectRatio', 'xMidYMid meet');
}
});
just before the big liquidation event, raising eyebrows in the crypto space.
A whale has opened a $750M, 10x Leveraged $BTC short position. It's already $3.7M in the red and will be liquidated if $BTC climbs above $130,800.
What do they know?
pic.twitter.com/GbJwoXw54e
— Bitcoin Titan (@BitcoinTitann) October 10, 2025
The connection triggered online debate over whether the WHITE House, President Donald Trump, or insiders caused trader liquidations or are trying to boost Hyperliquid’s visibility.
Word quickly spread, with X sleuths linking the whale wallet back to Garret Jinn, who incidentally holds another long position, “Will TRUMP pardon CZ in 2025?” on Polymarket.
Analysts on X argue that it is no coincidence that Jinn placed a major short on BTC just before Trump’s tariff announcement, while also holding a long position tied to White House decisions.
Garrett Jin has had one position open on Polymarket and has been buying for the last few weeks:
Yes shares on `Will Trump Pardon Changpeng Zhao in 2025?`
Now Trump is thinking about pardoning him.
Jin is connected to the Billion Dollar bitcoin Whale selling on HyperUnit pic.twitter.com/UIId1byDkI
— Emmett Gallic (@emmettgallic) October 10, 2025
However, so far there’s no solid evidence connecting Trump or the White House to the trades.
Jinn, on his behalf, was quick to share that the wallet belonged to one of his clients and not to him personally, further clarifying that he has no connection with the Trump family with the president himself.
The fund isn’t mine — it’s my clients’. We run nodes and provide in-house insights for them.
— Garrett (@GarrettBullish) October 13, 2025
Key Takeaways
- Japan plans to ban insider trading in crypto under updated financial regulations
- The SESC will investigate suspicious trades and recommend penalties or criminal charges
- FSA aims to finalize the framework by year-end and submit it next session
