The Financial Services Agency (FSA) of Japan is taking decisive action to outlaw insider trading in the cryptocurrency market.
According to a report by Nikkei Asia on Wednesday, the regulator will submit amendments to Parliament that explicitly extend existing financial laws to include digital assets.
The proposed rules would give the Securities and Exchange Surveillance Commission (SESC) the power to investigate suspicious transactions and impose financial penalties on violators.
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The FSA aims to finalize the legislation before the end of the year for introduction in 2026.
This move addresses a significant regulatory gap, as current Japanese insider trading laws do not apply to cryptocurrencies, leaving the market at the mercy of industry self-regulation.