Japan’s financial regulator plans to reclassify cryptocurrencies as “financial products” under new rules designed to stem insider trading activity.
The Financial Services Agency (FSA) in Japan is looking to crackdown on illegal insider trading that is taking place in the digital asset market, according to local media reports. The move is part of a broader effort to bring more oversight to Japan’s crypto market, where people trade Bitcoin (BTC), Ethereum (ETH), and other digital assets.
However, alongside crypto trading, there has been a steady rise in fraudulent activities in Japanese markets, according to the regulator. Consequently, the FSA plans to submit amendments to the “Financial Instruments and Exchange Act (FIEA)” that requires approval from Japan’s parliament.
Views on Crypto
Crypto is currently categorized as a “means of settlement” under Japan’s “Payment Services Act,” a designation that treats digital assets as a payment tool rather than an investment vehicle. The FSA says this classification has left gaps in regulatory oversight, particularly concerning activities such as insider trading. And that has paved the way for illegal activities to proliferate.
Details about the insider trading rules, such as what constitutes insider information in the crypto context or the penalties for violations, have not yet been finalized of disclosed by the FSA. Bitcoin is currently trading at $82,000 and continues to slump alongside other risk assets such as stocks.
Is BTC a Buy?
Most Wall Street firms don’t offer ratings or price targets on Bitcoin, so we’ll look at the cryptocurrency’s three-month performance instead. As one can see in the chart below, the price of BTC has declined 12.69% in the last 12 weeks.
