Overview
- Reports say the SESC would gain authority to investigate suspected crypto insider deals, recommend surcharges tied to illicit gains, and refer serious cases for prosecution.
- The FSA is working toward explicit rules that prohibit trading digital assets on non‑public information, with an amendment to the Financial Instruments and Exchange Act targeted for 2026.
- Current law does not clearly cover crypto insider activity, leaving oversight largely to the JVCEA, which has limited tools to detect or deter such trading.
- Regulators and analysts flag hurdles such as defining who counts as an insider for tokens without a central issuer and linking wallet activity to real identities.
- Policymakers cite rapid growth in Japan’s crypto market, including millions of local users and strong gains in on‑chain activity, as a driver for tighter protections.