TechFlow news, October 15 — According to Decrypt, Japanese regulators are developing regulations to ban insider trading in cryptocurrencies. Insider trading refers to buying or selling assets based on non-public information.
The report states that Japan's top financial watchdog, the Securities and Exchange Surveillance Commission (SESC), will soon be authorized to investigate suspected violations and may issue surcharge recommendations or refer cases for criminal prosecution regarding trades based on non-public information. Previously, insider trading laws did not apply to digital assets.
SESC's parent organization, the Financial Services Agency (FSA), will discuss specific details of the new regulations, aiming to pass the law by 2026. Regulators will first clearly define cryptocurrency trading based on non-public information as illegal, then draft more specific rules.
