Japan has formally recognized cryptocurrencies as traditional financial instruments.

According to a recent report by Nikkei, the Japanese government has approved a bill classifying cryptocurrencies as financial instruments, further legitimizing their status in the country.

The legislation aims to amend the existing Financial Instruments and Exchange Act to provide more protection for investors.

Per the report:

For the first time, it will regulate crypto assets as financial instruments, prohibiting insider trading based on undisclosed information. It will also require cryptocurrency issuers to disclose information once a year, creating a healthy market…