Azernews.Az

by Alimat Aliyeva

Japan's parliament has passed an amendment to the Financial Instruments and Exchange Act that officially classifies cryptocurrencies such as Bitcoin as financial assets, AzerNEWS reports, citing foreign media.

Under the revised law, crypto assets will now be subject to insider trading regulations, meaning investors and companies will be prohibited from making trades based on confidential information that has not been made public. Businesses that issue new cryptocurrencies to raise funds will also be required to provide greater transparency and disclose how the collected money will be used.

Previously, cryptocurrencies in Japan were mainly regulated as a means of payment under the Payment Services Act. The new framework represents a major shift, treating digital assets more like traditional financial instruments such as stocks and securities.

The changes are expected to come into effect within one year and could strengthen investor protection while increasing confidence in Japan's growing digital asset market.

Japan has been considered one of the more crypto-friendly countries among major economies, with regulators aiming to create clear rules rather than impose strict bans. Experts believe the new approach could encourage more institutional investors and help Tokyo become a leading hub for blockchain and Web3 innovation in Asia.