Japan's Financial Services Agency Plans Strict Punishment for Unregistered Crypto Sales, Proposing Maximum Prison Term of 10 Years

ZkProver · 2026-03-16T14:26:26+00:00

The Japan Financial Services Agency plans to strengthen regulation of unregistered cryptocurrency operators by moving related provisions to the Financial Instruments and Exchange Act, increasing criminal penalties to 10 years imprisonment or 10 million yen in fines. Simultaneously, the Securities and Exchange Surveillance Commission will be granted greater investigative powers, and the names of registered operators will be changed. This initiative aims to enhance investor protection and respond to the growing trend of meme token disputes.

ZkProver

2026-03-16 14:26:26

Abstract generation in progress

ChainCatcher News reports that, according to Nikkei, Japan’s Financial Services Agency (FSA) plans to strengthen penalties and regulation for unregistered cryptocurrency operators. The plan proposes moving regulations related to crypto assets from the Payment Services Act to the Financial Instruments and Exchange Act to enhance investor protection. For operators selling crypto assets without registration, criminal penalties are expected to increase from the current “up to 3 years imprisonment or a fine of up to 3 million yen” to “up to 10 years imprisonment or a fine of up to 10 million yen (or both).”

Additionally, the Securities and Exchange Surveillance Commission will be authorized to conduct mandatory on-site inspections and seize evidence during criminal investigations. The legal name for registered operators is expected to change from “cryptocurrency exchange operator” to “cryptocurrency trading operator.” This move is in response to the increasing number of disputes related to highly speculative meme tokens.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.