Nikkei reported that the Japanese government approved an amendment to the 'Financial Instruments and Exchange Act' on the 10th at a cabinet meeting (state council), officially classifying cryptocurrency as a 'financial product' and incorporating it into the institutional framework. The aim is to move away from the existing method of managing cryptocurrency under the 'Payment Services Act' as a means of payment, and instead apply measures such as prohibiting insider trading using undisclosed information and mandating annual information disclosure by issuers. Accordingly, the name of related businesses will change from 'Crypto-Asset Exchange Service Provider' to 'Crypto-Asset Trading Service Provider'. Investor protection measures will be significantly strengthened, including an increase in penalties for unregistered operations, with punishments rising to imprisonment of up to 10 years or fines ranging from 3 million yen to 10 million yen. Minister of Finance Satsuki Katayama emphasized that this revision will ensure market fairness and transparency, and the bill is expected to come into effect as early as 2027 if passed by the parliament.
