TechFlow News: On April 10, according to the Nikkei newspaper, the Japanese government convened a cabinet meeting and formally approved an amendment to the Financial Instruments and Exchange Act (FIEA). This amendment marks the first time that crypto assets (virtual currencies) have been incorporated into Japan’s financial instruments regulatory framework. It prohibits insider trading based on non-public information and mandates that issuers disclose information annually. Regulatory oversight will thus officially shift from the Payment Services Act to the FIEA; accordingly, registered entities’ designation will change from “Crypto Asset Exchange Service Providers” to “Crypto Asset Trading Service Providers.”
Regarding penalties, for institutions engaging in unlicensed crypto asset sales, the maximum term of imprisonment has been increased from three years to ten years, and the maximum fine has been raised from ¥3 million to ¥10 million.
