Japan's financial regulator is set to revise the country's laws to categorize cryptocurrencies as financial products in 2026, Nikkei has reported.
The Financial Services Agency (FSA) intends to propose a bill to Parliament next year to amend the Financial Instruments and Exchange Act, following internal assessments.
Although details are still being determined, cryptocurrencies are expected to fall within the scope of insider trading laws that currently apply to financial products such as shares, which prohibit insider-based trading.
Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange
However, cryptocurrencies are likely to be kept separate from securities such as stocks and bonds.
If implemented, companies dealing in cryptocurrencies would have to register with the FSA.