TechFlow News, July 16, according to Cointelegraph, the Japanese Diet has passed an amendment to the Financial Instruments and Exchange Act, officially classifying crypto assets as financial assets, replacing the previous Payment Services Act framework. The new regulations introduce restrictions on crypto insider trading, requiring market participants such as exchanges and issuers not to trade using undisclosed material information, with rules designed to align with traditional financial markets.
The amendment significantly increases penalties for violations, with maximum prison sentences for unregistered operating enterprises increasing from 3 years to 10 years, and fines rising from approximately 3 million yen ($19,000) to approximately 10 million yen; insider trading violations can be punished with up to 5 years imprisonment or a fine of 5 million yen. Meanwhile, the term for registered enterprises changed from "Cryptocurrency Exchange" to "Cryptocurrency Trading Company," reflecting the regulator's repositioning of the industry's financial attributes.
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