Japan's regulators are introducing regulations that explicitly prohibit insider trading in cryptocurrencies

ChainCatcher News, Japanese financial authorities are preparing to crack down on insider trading in cryptocurrencies. According to a report by the Nikkei on Wednesday, the Financial Services Agency of Japan plans to submit an amendment that explicitly prohibits trading based on non-public information, with violators facing economic penalties proportional to their illegal gains.

The amendment will authorize the Securities and Exchange Surveillance Commission to investigate suspicious cases and recommend increased fines or criminal referrals. The Financial Services Agency plans to finalize regulatory details by the end of the year and aims to submit it at next year's parliamentary session. Currently, Japan's Financial Instruments and Exchange Act does not cover insider trading in cryptocurrencies, with regulation primarily relying on self-regulation by cryptocurrency companies and industry associations.