Japan’s security regulator has been reported to be set to introduce regulations to prohibit and punish the Crypto Insider trade, which is more in line with how the country manages stock trading.
Japan’s Securities and Exchange Surveillance Commission are authorized to investigate the weakening of trading activity and press violators with a fine based on how much they have benefited from insider trading, Nikkei Asia reported on Tuesday.
The Securities Regulator will also make criminal referrals in more serious cases.
There are no insider trading rules under the Financial Instruments and Exchange Act covering the crypto, and the self-regulated Japan Virtual and Crypto Assets Exchange Association does not have a tracking system to see suspicious trade, which motivates the need for stronger regulatory management in Crypto markets.
The financial service agency, the SESC parent organization, will discuss the details of the regulatory framework through a working group by the end of 2025, with the aim of submitting a proposed FIEA amendment next year.
Japanese regulators have a limited experience in dealing with Crypto Insider trading cases, which is part of the fact that many tokens are lacking in a recognizable provider, which makes it difficult to determine who qualifies as an insider, according to Nikkei Asia.
Moving towards reasonable crypto regulation follows a four -time increase in the number of local crypto users to 7.88 million in the last five years – about 6.3% of Japan’s population.
Japan expects to bring pro-tech prime minister
Sanae Takaichi, who is likely to be Japan’s next prime minister, is that -Phone to bring fresh political momentum Risks of possession, including crypto, while maintaining Japan strict regulation criteria.
His leadership will introduce a more open bearing towards the experiment in Tech, which expressed support for “technological sovereignty” and further development of digital infrastructure, such as Blockchain tech.
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Takaichi also favors lower interest rates, tax cuts, and a More loose financial policy, potentially encourages more capital flow to the Japan crypto industry.
FSA wants to regulate crypto under FIEA Act
At the beginning of September, FSA sought to put a crypto regulation Under the FIEA ACT, Its transfer from the Payment Services Act to strengthen the investor protection and align the crypto with security laws.
The FSA said the move could address common investment issues in the crypto market, including inaccurate disclosure, unregistered operations, scams and security concerns related to crypto exchanges.
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