Japan will introduce new regulations to ban cryptocurrency insider trading

According to Foresight News, Japan’s top financial regulator will introduce regulations to prohibit insider trading in cryptocurrencies and impose surcharges based on the amount of gains made by offenders through illegal transactions, Nikkei reported. Amendments to the law will be submitted to parliament in 2026. The Securities and Exchange Commission (SESC) will be empowered to investigate suspected violations and issue recommendations for additional fines or criminal charges for transactions based on undisclosed information. Previously, insider trading rules under the Financial Instruments and Exchanges Act (FIEA) did not apply to cryptocurrencies. Japan currently relies on cryptocurrency exchanges and the Japan Virtual and Crypto Asset Exchange Association for self-regulation.



The plan would first include explicit provisions in the Foreign Investment Law prohibiting cryptocurrency trading based on undisclosed information. On this basis, the Financial Services Agency (FSA) can issue detailed guidance clarifying which conduct will be regulated. For example, if you know about an exchange's listing plans or before information about a major security breach becomes public, you may be subject to a ban.

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