Japanese regulators plan to ban cryptocurrency insider trading

Japanese regulators plan to ban insider trading in the cryptocurrency sector. The Securities and Exchange Surveillance Commission, the country's top financial regulator, will soon be authorized to investigate related violations and recommend additional fines or referrals for criminal investigation for those trading using non-public information. Previously, insider trading regulations did not cover the digital asset sector. The Financial Services Agency (FSA) will discuss the details of the new regulations, aiming to pass them by 2026. In terms of implementation, regulators will first explicitly prohibit the use of non-public information in cryptocurrency trading, and will subsequently develop more detailed and specific rules to regulate the cryptocurrency market, protect investor rights, and promote the healthy development of the digital asset industry.