Japan Tightens Crypto Oversight with New Insider Trading Rules
Japan's financial regulators are taking decisive steps to clamp down on insider trading in cryptocurrency markets. The Securities and Exchange Surveillance Commission (SESC) will soon wield new powers to investigate, fine, and prosecute offenders—mirroring existing securities trading standards. This move aims to close regulatory gaps that have left digital assets outside the scope of the Financial Instruments and Exchange Act (FIEA).
The framework, slated for completion by late 2025, comes as Japan's crypto user base swells to 7.88 million. Fines will scale with illicit profits, while egregious cases may face criminal referral. Market participants now confront a watershed moment: the same scrutiny long applied to stocks is coming for crypto.