Japan plans to include crypto assets in the securities regulatory framework, tighten IEO disclosure and crack down on insider trading

According to Foresight News, the Japan Financial Services Agency (FSA) released a report of the Financial Council Working Group, which plans to transfer the regulatory basis for crypto assets from the current Payment Services Act (PSA) to the Financial Instruments and Exchange Act (FIEA), which mainly targets investment and securities markets. The proposal plans to strengthen IEO disclosure requirements, mandate the provision of pre-sale information such as issuing entity details and token distribution methods, and conduct third-party code audits.

In addition, the new framework plans to introduce insider trading and unfair trading regulations for crypto assets and establish a levy system; give regulatory agencies stronger tools to crack down on unregistered platforms including overseas platforms and DEX; it is also recommended that banks and insurance companies be allowed to hold crypto assets for investment purposes on the premise of establishing a risk management system.

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