According to the Nikkei News, the Japanese government officially completed key revisions to the Financial Instruments and Exchange Act on Friday this week, explicitly upgrading the legal definition of cryptocurrency assets from a means of payment to financial instruments.

This legislative change not only redefines the nature of these assets but also includes strict prohibitions against insider trading and trading based on unpublished information. The revised law imposes stricter transparency requirements on cryptocurrency issuers, requiring them to disclose comprehensive information at least once a year.

Previously, the Japanese Financial Services Agency had regulated such assets under the Payment and Settlement Services Act, with the primary focus on preventing risks to the payment system. However, as the nature of these assets evolved, the existing regulations became insufficient to address the increasingly complex capital operation models.

By bringing cryptocurrencies under the same regulatory framework as traditional financial markets, Japan aims to create a fair and transparent environment for capital formation.