Japan moves to classify cryptocurrencies as financial products

Policy Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Japan moves to classify cryptocurrencies as financial products The new rules ban insider trading, require issuers to publish annual disclosures, and impose stricter penalties: up to 10 years in prison and 10 million yen in fines for operating without registration. By Francisco Rodrigues , AI Boost | Edited by Sheldon Reback Apr 10, 2026, 8:58 a.m. Make preferred on Tokyo, Japan (Jaison Lin/Unsplash) What to know : Japan's cabinet approved a draft amendment classifying cryptocurrencies as financial products under the Financial Instruments and Exchange Act, shifting from treating them as payment tools. The law could take effect in fiscal 2027. The new rules ban insider trading, require issuers to publish annual disclosures and impose stricter penalties: up to 10 years in prison and 10 million yen ($62,800) in fines for operating without registration. The move aims to expand capital supply, ensure market fairness and protect investors. Japan’s cabinet has approved a draft amendment that would classify cryptocurrencies as financial products, marking a shift in how the country regulates the sector. The proposal brings crypto assets under the Financial Instruments and Exchange Act, a framework used for stocks and other securities, Nikkei reported. If passed during the current parliament session, the law could take effect as early as fiscal 2027. Until now, Japan has treated crypto mainly as a payment tool under the Payment Services Act. That approach focused on custody, anti-money laundering checks and exchange registration. The new rules would ban insider trading and require issuers to publish annual disclosures. Penalties would also rise. Operating without registration could bring up to 10 years in prison, up from three, and fines could increase to 10 million yen ($62,800). The Securities and Exchange Surveillance Commission would gain broader authority to police the market. In a press conference, Minister for Financial Services Satsuki Katayama said the move will “expand the supply of growth capital in response to changes in the financial and capital markets, ensuring market fairness, transparency, and the protection of investors.” Cryptocurrency Regulation Japan AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards . For more information, see CoinDesk's full AI Policy . More For You Encryption Supremacy: Zcash and Privacy in the Age of Scale By CoinDesk Research Mar 31, 2026 Commissioned by GenZcash Most crypto privacy models weaken as blockchain data grows. Encryption-based models like Zcash strengthen. CoinDesk Research maps the five privacy approaches and examines the widening gap. Why it matters : As blockchain adoption scales, the metadata available to machine learning models scales with it. Obfuscation-based privacy approaches are structurally degrading as a result. This report provides a comprehensive comparison of all five major crypto privacy architectures and a framework for evaluating which models remain durable as AI capabilities improve. View Full Report More For You U.S. Treasury to loop in crypto sector on hacker warnings shared with traditional firms By Jesse Hamilton | Edited by Nikhilesh De 15 hours ago The Department of the Treasury announced it's letting crypto firms sign up for timely information-sharing on cybersecurity threats. What to know : U.S. authorities will start sharing timely cybersecurity information with crypto firms that sign up for the same service previously extended only to traditional financial institutions. The Treasury Department said the growing importance of the digital assets space warrants its inclusion in these protective measures. Read full story Latest Crypto News XRP may be less exposed to quantum computer threats than bitcoin, experts say 2 hours ago XRP edges higher to $1.35 on breakout, but bullish momentum still lacks 3 hours ago ETH, SOL, DOGE slide as Bitcoin fails to break $73,000 for the third time since the ceasefire 4 hours ago Quantum-safe bitcoin now possible without a soft fork, but costs $200 a pop, new research shows 5 hours ago OKX and HashKey invest in new Vietnam exchange ahead of crypto licensing push 6 hours ago Mythos AI threat prompts Bessent, Powell to convene bank CEOs for urgent talks 6 hours ago Top Stories Trump's World Liberty Financial uses 5 billion WLFI to borrow $75 million from a platform its advisor co-founded 18 hours ago Kalshi now controls 89% of the U.S. prediction market as regulated trading takes over 14 hours ago Securitize names ex-SEC official Brett Redfearn as president ahead of public listing 15 hours ago Potential buyers are circling Winklevoss-backed crypto exchange Gemini 15 hours ago Iran's crypto tanker tolls are the latest step in its sanctions‑busting trade network Apr 9, 2026