Key Takeaways
Who will enforce the rules?
The SESC, overseen by the FSA, can investigate violations and impose surcharges.
Why is this important?
It strengthens oversight in a market that previously relied on self-regulation, boosting investor confidence.
Global sentiment around crypto regulation continues to diverge, with some nations embracing digital assets while others tighten their grip.
Japan is the latest to take a firmer stance, as its top financial regulator moves to outlaw insider trading in cryptocurrencies.
Japan’s crypto step back
According to Nikkei Asia, the Securities and Exchange Surveillance Commission (SESC) will soon gain the authority to probe suspected cases and impose surcharges based on illicit gains.
The move marks a policy shift. Japan’s insider trading framework, once limited to securities, now includes digital assets.
According to reports, the Financial Services Agency (FSA) plans to finalize the framework by year-end and amend the Financial Instruments and Exchange Act (FIEA) next year.
The revised FIEA empowers the SESC to investigate and penalize illicit trades. It bans trading on undisclosed information and aligns crypto rules with securities law.
However, defining what constitutes “insider information” in crypto remains complex, especially for tokens without clear issuers.
Yet, Japan’s move follows a global trend toward tightening oversight, with the EU and South Korea already establishing frameworks to tackle market manipulation and insider trading.
Metaplanet’s market value drops
This coincided with Metaplanet Inc., seeing its market value drop below its Bitcoin [BTC] reserves.
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Author: Ishika Kumari
