Japan’s FSA Readies Crackdown on Cryptocurrency Insider Trading — Bitcoin Spotlighted in Proposed Rules

The Japanese Financial Services Agency is moving to tighten controls on cryptocurrency insider trading, according to a report by Nikkei. The proposed amendment would explicitly ban trading on non-public information, aligning digital asset oversight with conventional securities frameworks.

Under the plan, the amendment would enable the Securities and Exchange Surveillance Commission to probe suspicious activity and to recommend sanctions, including fines or criminal referrals; penalties would be calibrated to mirror the magnitude of any ill-gotten gains. The measure is structured to create enforceable deterrents while preserving investigatory discretion.

The Financial Services Agency expects to finalize regulatory details by year-end and pursue submission at the next parliamentary session. Currently, the Financial Instruments and Exchange Act does not explicitly cover cryptocurrencies, leaving industry compliance largely to self-regulatory bodies.