Analysis: Japan Will Reclassify Crypto as Financial Products
Japan is taking a significant step toward reshaping its approach to cryptocurrency regulation. By 2026, the Financial Services Agency (FSA) plans to reclassify crypto assets as financial products under the Financial Instruments and Exchange Act. This shift will bring cryptocurrencies under the same regulatory framework as stocks and bonds, subjecting them to insider trading rules and stricter oversight.
The decision reflects Japan’s shifting stance on digital assets. Initially recognized primarily as a payment method, cryptocurrencies have grown into an investment class with increasing market influence. As blockchain technology and cashless transactions gain momentum, integrating crypto into the broader financial system appears to be a…
