Bitcoin News: Japan Plans to Tighten Crypto Regulations Targeting Insider Trading

Japan’s Financial Services Agency (FSA) is set to redefine cryptocurrencies under financial law, classifying them as financial products to crack down on insider trading. Here’s a closer look at the potential impact on the crypto market.

Japan Eyes Stricter Crypto Rules Targeting Insider Trading

Japan’s financial regulator, the Financial Services Agency, is reportedly planning to redefine cryptocurrencies under financial law, subjecting them to new compliance requirements. The agency aims to classify cryptocurrencies as financial products to target insider trading. A bill to revise the Financial Instruments and Exchange Act could be submitted to parliament as early as 2026. Currently, cryptocurrencies like Bitcoin (BTC) are treated as a means of settlement under the Payment Services Act, but if reclassified, they will likely be placed in a different category from traditional securities like stocks. Japan has seen a surge in crypto trading activity recently.

Bitcoin ETF Weekly Inflows Drop Over 70% Ahead of April Tariffs

Spot Bitcoin exchange-traded funds (ETFs) in the United States saw a significant decrease in net inflows last week, snapping a 10-day streak that brought in nearly $1.07 billion. According to data from SoSoValue, the 12 spot Bitcoin ETFs recorded $196.48 million in net inflows, a 73.6% drop from the previous week’s $744.35 million. Notably, the funds experienced net positive flows early in the week, but sentiment shifted, resulting in a net outflow of $93.16 million on Friday. BlackRock’s IBIT was the main beneficiary of inflows.

Bitcoin Tumbles Below $82k Amid Market Decline

Bitcoin is trading around $81,800, marking a 1.98% decrease over the past 24 hours. The asset has fallen over 7% from its March 25 peak of $88,400. This sustained decline has led to $220 million in liquidated crypto positions, marking the seventh consecutive day of lower lows for Bitcoin. The broader digital asset market is also experiencing losses, with the global crypto market capitalization dropping to $2.65 trillion, a 1.77% decrease over the same period. Daily trading volume has also fallen by 1.4% to $57 billion. Market confidence is eroded due to macroeconomic stress and tariff uncertainty ahead of former President Donald Trump’s ‘Liberation Day’ on April 2.

Will Bitcoin Fall Below $80k? Options Bets Suggest Yes

US President Trump’s tariffs and threats of import taxes are causing concern for global financial markets. Financial markets have not fully priced in the impact of Trump’s upcoming trade measures, leading to a decline in risk assets, including cryptocurrencies. Concerns over inflation and growth are exacerbating negative sentiment, contributing to an expected poor first-quarter performance for Bitcoin. Since our previous research note highlighting the risks associated with Trump’s aggressive trade stance, Bitcoin has fallen from above $87,000 to under $82,000, demonstrating significant market correction.

Worst Q1 for BTC Price Since 2018

Bitcoin (BTC) ends Q1 with 13% losses due to macroeconomic volatility. The BTC price risks dipping below $80,000 as new US trade tariffs affect risk-asset sentiment. Crypto traders are concerned about April 2, dubbed ’Liberation Day’ by Donald Trump, while gold prices rise. Despite the negative outlook, Bitcoin had a relatively mild March, but Q1 threatens to be its worst in seven years. Profitability indicates a bull market drawdown with no clear bottom. The Coinbase Premium suggests that panic sellers have already exited the market.