Japan is preparing to tighten regulation of the crypto market by officially equating crypto assets with financial products. The Financial Services Agency (FSA) plans to ban insider trading in digital assets, making insider trading illegal. The bill, aimed at protecting investors and increasing transparency, will be submitted to parliament in 2026 after years of expert discussions.

This move continues Japan's course to create a safe environment for crypto investors. Since 2017, the country recognized Bitcoin as a means of payment, and in 2023 introduced strict rules for storing assets on exchanges. The new ban on insider trading will eliminate the imbalance between crypto platforms and traditional financial institutions.

Analysts warn that tightening controls could reduce market liquidity but also boost institutional confidence. It is a major step in Japan's transformation into a global hub for regulated digital assets.