Japan's finance regulator is planning to classify cryptocurrencies as financial products

Japan's finance regulator is planning to change the country's laws to classify cryptocurrencies as financial products as early as 2026

Japan’s financial regulator is considering classifying cryptocurrencies as financial products as early as 2026, the Nikkei reported on March 30.

The Financial Services Agency (FSA) plans to submit a bill to parliament as early as next year to revise the Financial Instruments and Exchange Act.

The move comes amid a broader effort by the Japanese government to promote cryptocurrencies.

The FSA has been discussing the possibility of classifying crypto as a financial product since last year, setting up internal study groups to consider the changes.

The report did not specify what cryptocurrencies would be covered by the regulations or how they would be enforced against companies operating outside of Japan.

It also did not mention how the FSA planned to differentiate between major cryptocurrencies like Bitcoin (BTC) and Ether (ETH) and smaller, more speculative tokens.

The move would see cryptocurrencies likely put under insider trading laws that currently apply to other financial products, such as stocks, which outlaws trades based on insider information. However, cryptocurrencies are likely to be put in a separate category from securities such as stocks and bonds.

If the changes go through and crypto is regulated under the country’s finance laws, companies offering crypto would have to register with the FSA.

The regulator’s plans to classify crypto as a financial product comes as early as 2026.

The Financial Services Agency (FSA) plans to submit a bill to parliament as early as next year to revise the Financial Instruments and Exchange Act.

The move comes amid a broader effort by the Japanese government to promote cryptocurrencies.

The agency has been considering the changes through internal study groups.

The report did not specify what cryptocurrencies would be covered by the regulations or how they would be enforced against companies operating outside of Japan.

It also did not mention how the FSA planned to differentiate between major cryptocurrencies like Bitcoin (BTC) and Ether (ETH) and smaller, more speculative tokens.

The move would see cryptocurrencies likely put under insider trading laws that currently apply to other financial products, such as stocks, which outlaws trades based on insider information. However, cryptocurrencies are likely to be put in a separate category from securities such as stocks and bonds.

If the changes go through and crypto is regulated under the country’s finance laws, companies offering crypto would have to register with the FSA.