Nikkei News: The Japanese Financial Bureau plans to propose officially classifying cryptocurrency as a financial product

The Nikkei News reported on Sunday that the Japanese Financial Services Agency plans to propose classifying crypto assets as financial products, as part of new regulations for insider trading in cryptocurrencies. According to reports, after conducting closed-door expert analysis on the existing legal framework, the agency plans to submit amendments to the "Financial Instruments and Exchange Act" to parliament as early as 2026. So far, Japan has classified cryptocurrencies as a means of settlement under the "Payment Services Act". The report said that with potential rule changes, Japan's financial regulatory authorities are seeking to strengthen control over local cryptocurrency service providers because they see an increasing number of cases involving fraudulent cryptocurrencies. Classifying cryptocurrencies as financial products means not only exchanges but also companies soliciting cryptocurrency investments need to register with financial regulators. According to Nikkei News, upcoming legislation may distinguish crypto assets from other securities such as stocks and bonds while insider trading rules are expected to take a form similar to those regulating traditional financial products. Details about these insider trading rules have not yet been announced.