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Japan passes crypto overhaul to bring digital assets under financial rules

Japan's parliament passed legislation reclassifying cryptocurrency as a financial asset under the Financial Instruments and Exchange Act, moving regulation away from the Payment Services Act and introducing insider trading rules, stronger compliance obligations, and significantly increased penalties for unlicensed operators. The shift aligns Japan with a global regulatory trend of applying traditional financial frameworks to crypto markets.

This Wire brief sits within Fusion42's coverage of Fintech. Wire is Fusion42's founder-focused intelligence feed: each story is connected to the funds and startups it names — every one with a live profile on Raise or Scout — so founders can follow the capital and the momentum behind the headline rather than just the headline itself. Wire analysis is one of the live surfaces Arthur, Fusion42's AI co-founder, reasons over.

The Wire takeaway

If you're building a crypto exchange or trading platform in Japan, you're now regulated like a stock exchange — insider trading rules, higher penalties for non-compliance (10 years prison, 10m yen fines), and registration under FIEA instead of PSA. The compliance bar just jumped, but the market you're entering is now explicitly legitimised as financial infrastructure, not a payment experiment.

Read the full story at lcx.com

Topics: Fintech · crypto-regulation · japan-fintech · insider-trading-rules · market-access · compliance-shift

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Verified 16 July 2026 · Sources: Fusion42 review