Key Takeaways:
- Japan plans to empower its securities regulator to investigate and penalize insider trading in crypto by amending the Financial Instruments and Exchange Act (FIEA).
- The move follows a fourfold increase in domestic crypto users, highlighting regulatory gaps in monitoring and enforcement.
- Incoming leadership under pro-tech politician Sanae Takaichi may support stricter oversight alongside policies favoring digital innovation and investment.
Japan plans to tighten its oversight of the cryptocurrency market by introducing new rules to combat insider trading.
The proposed framework would empower the Securities and Exchange Surveillance Commission (SESC) to investigate suspicious crypto trades and impose fines proportional to illicit profits, with the ability to make criminal referrals in more serious cases.
Japan to ban cryptocurrency insider trading with new rules https://t.co/TaOS9550Pm
— Nikkei Asia (@NikkeiAsia) October 14, 2025
Currently, Japan’s Financial Instruments and Exchange Act (FIEA) does not cover crypto-related insider trading, and the Japan Virtual and Crypto Assets Exchange Association (JVCEA) lacks a monitoring framework to detect suspicious activity.
The Financial Services Agency (FSA) aims to form a working group by late 2025 and propose FIEA amendments next year to close these gaps.
The move follows a fourfold surge in domestic crypto users, reaching 7.88 million people (about 6.3% of Japan’s population).
Political momentum is also building as Sanae Takaichi, expected to become the next prime minister, supports pro-technology, pro-investment policies.
The FSA has already begun shifting crypto oversight from the Payment Services Act to the FIEA, aligning digital assets with traditional securities laws to enhance investor protection and address fraud, poor disclosures, and exchange security risks.
About The Author
Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.
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