#CryptoMarketRecovery

The Cabinet of Japan has approved a draft amendment that will classify cryptocurrencies as financial products — this will change the country's approach to regulating the sector.
According to the proposal, crypto assets will fall under the scope of the Financial Instruments and Exchange Act — a regulatory act that applies to stocks and other securities, reports Nikkei. If the law is passed during the current parliamentary session, it could come into effect as early as the 2027 fiscal year.
Until now, Japan primarily regarded cryptocurrencies as a means of payment under the Payment Services Act. This approach focused on asset storage, anti-money laundering checks, and exchange registration. The new rules will prohibit insider trading and require issuers to publish annual reports.
Sanctions will also be tightened. Working without registration could face up to 10 years in prison ( previously — up to 3 years ), and fines could increase to 10 million yen ($62 800). The Securities and Exchange Surveillance Commission will gain broader authority to oversee the market.
At a press conference, Minister of Financial Services Satsuki Katayama stated that this measure "will help increase capital inflows for growth considering changes in financial and capital markets, ensure market fairness, transparency, and investor protection."