Japan plans to regulate insider trading of Crypto Assets, imposing fines and even criminal liability.

Japan is preparing to legislate against insider trading in Crypto Assets, with violators facing fines and even criminal liability.

Japan plans to regulate internal trading of Crypto Assets, imposing fines and even criminal liability.

Currently, the insider trading rules under Japan's Financial Instruments and Exchange Act do not apply to Crypto Assets, and exchanges and related businesses can only conduct self-regulation. However, critics point out that the trading monitoring systems are still insufficient, leaving room for unfair practices.

According to Nikkei News, Japan's Financial Services Agency (FSA) plans to submit an amendment that explicitly prohibits trading based on non-public information, with violators facing fines proportional to their illegal gains. The amendment will authorize the Securities and Exchange Surveillance Commission to investigate suspicious cases and recommend additional fines or criminal referrals.

The FSA plans to finalize the rules through a working group by the end of this year and intends to submit amendments during next year's regular parliamentary session.

Insider trading in the crypto market is harder to discern than in stock trading.

However, defining insider trading in Crypto Assets faces unique challenges; unlike traditional securities, many tokens lack identifiable issuers, making it more complex to determine who qualifies as an "insider."

In fact, insider trading seems to be quite common in the Crypto Assets market and related digital asset financial companies (DAT). Last Friday, just before the market crash, there were reports that multiple whales sold coins in advance and even opened short positions to make a profit. However, since the on-chain addresses are not named, it is impossible to verify their true identities.

(Garrett Jin denied the rumors of being a Hyperliquid whale and insider trading, and shorted 300 million USD BTC) again.

It was previously reported that the NASDAQ exchange in the United States required DAT to obtain shareholder approval before issuing stocks for the purchase of Crypto Assets, also based on the standards of market transparency. After all, many DAT stock prices had already been pushed up significantly before the trading announcement, making it hard to believe that there was no insider trading.

This article discusses Japan's plan to regulate insider trading of Crypto Assets, which will impose fines and even criminal liability. It first appeared in Chain News ABMedia.