The Japanese government cabinet has approved a bill to classify cryptocurrencies as financial commodities.

ME News report: On April 10 (UTC+8), the Japanese government approved an amendment to the Financial Instruments and Exchange Act at a cabinet meeting. The amendment will, for the first time, regulate crypto assets (virtual currencies) as financial products and prohibit insider trading and other acts based on non-public information. At the same time, it requires cryptocurrency issuers to make information disclosures once every year to improve a healthy market environment. If this bill is passed by this session of the Diet, it is expected to be implemented as early as fiscal year 2027.

Previously, Japan’s Financial Services Agency mainly regulated cryptocurrencies based on their positioning as “used as a means of payment,” under the Act on Funds Settlements. However, in recent years, the use of cryptocurrencies as investment tools has been steadily increasing, so they will be brought under the regulatory framework of the Financial Instruments and Exchange Act. In addition, the names of registered entities will change from “cryptocurrency exchange business operators” to “cryptocurrency asset trading business operators.”

Meanwhile, penalties will also be strengthened: for institutions that engage in sales without registration, the prison term will be increased from the current maximum of 3 years to a maximum of 10 years, and the fine will be increased from the current maximum of 3 million yen to a maximum of 10 million yen. By increasing penalties, the stance on protecting investors will be further strengthened. (Source: ChainCatcher)