Japan To Introduce Penalties for Crypto Insider Trading
Japan is set to impose stringent penalties on cryptocurrency insider trading, marking a significant shift in regulatory oversight. The Securities and Exchange Surveillance Commission (SESC) will soon have the authority to investigate suspicious trades and recommend surcharges tied to illicit gains. Criminal prosecution may follow for severe violations.
Currently, Japan's insider trading rules under the Financial Instruments and Exchange Act exclude cryptocurrencies, leaving oversight to self-regulation by exchanges and the Japan VIRTUAL and Crypto Assets Exchange Association (JVCEA). Critics argue this system is inadequate, allowing unfair practices to persist.
The Financial Services Agency aims to finalize the new rules by year-end, with amendments to the Financial Instruments and Exchange Act expected in the next parliamentary session. The move underscores Japan's commitment to tighter crypto market integrity.
