Japan Moves to Criminalize Crypto Insider Trading Under Expanded FIEA Framework
Japan's financial regulators are drafting legislation to explicitly prohibit cryptocurrency insider trading, mirroring existing securities market rules. The proposed measures would empower the Securities and Exchange Surveillance Commission to impose fines based on illicit profits and escalate egregious cases for criminal prosecution.
The regulatory overhaul seeks to bring digital assets under the Financial Instruments and Exchange Act by 2026, closing current gaps in oversight. Centralized enforcement through the SESC replaces the Japan VIRTUAL Currency Exchange Association's limited self-regulatory approach, addressing vulnerabilities in the current system.