Japan has officially taken a major step in regulating digital assets by granting cryptocurrencies the status of financial instruments.
According to a report by Nikkei, the government has approved new legislation that classifies cryptocurrencies under the category of financial instruments, strengthening their legal standing within the country.
The law is designed to revise the existing Financial Instruments and Exchange Act with the goal of improving investor protection and ensuring greater transparency in the market.
Under the new framework, crypto assets will be regulated in a way similar to traditional financial products. The rules will ban insider trading based on non public information and require issuers to provide annual disclosures, helping to create a more transparent and stable market environment.
Previously, Japan’s Financial Services Agency had treated cryptocurrencies under the Payment Services Act, recognizing them mainly as a method of payment.
With the updated regulations, penalties for violations have become much stricter. Individuals or entities operating without proper registration could face prison sentences of up to ten years, compared to the previous maximum of three years. Financial penalties have also been increased significantly, rising from a maximum of three million yen to as much as ten million yen.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
