Japan to classify crypto as financial products in 2026

Japan is preparing a major shift in its crypto regulation: starting in 2026, digital assets may be officially recognized as financial products. The Financial Services Agency (FSA) of Japan is planning to submit a draft bill to parliament next year to amend the Financial Instruments and Exchange Act.
 

Insider Trading Rules and Stricter Oversight

If adopted, the proposal will introduce insider trading restrictions on cryptocurrencies, similar to those that apply to traditional financial instruments. This move would strengthen oversight not only of exchanges but also of crypto investment firms operating in the country.
 

Currently, cryptocurrencies in Japan are categorized as means of payment. However, due to their growing role in the investment sector, regulators are considering placing them in a separate legal category — different from stocks and bonds but with similar requirements for transparency and oversight.
 

More Responsibilities for Market Participants

The new classification would give the FSA greater power to combat fraud and enhance investor protection. It would also enable the agency to tighten registration and reporting requirements for crypto-related entities.
 

If the changes take effect, not only crypto exchanges but also all companies involved in crypto fundraising — including startups, investment platforms, and custodial services — will be required to register with financial authorities.
 

Back in February 2025, the FSA initiated discussions about recognizing crypto assets as financial products. The new legislation confirms Japan’s intention to move from theory to implementation.