The Japanese Cabinet has approved a bill to categorize cryptocurrency as a financial product

**April 10th (Nikkei News) — The Japanese government greenlit a proposed amendment to the Financial Instruments and Exchange Act at a Cabinet meeting on Thursday. For the first time, the bill classifies cryptocurrency as a financial asset, banning insider trading using undisclosed information. It also requires crypto issuers to file annual disclosures to foster a healthy market. If passed in the current Diet session, the amendment could take effect as early as fiscal 2027.** **Previously, Japan’s Financial Services Agency (FSA) regulated crypto under the Payment Services Act, treating it as a “means of payment.” But growing use of crypto as an investment tool has pushed it into the Financial Instruments and Exchange Act’s regulatory scope. Registered entities will also see a name change: from “cryptocurrency exchange operators” to “cryptocurrency trading operators.”** **Penalties are being toughened too: unregistered entities operating crypto sales face a maximum 10-year prison term (up from 3 years) and a fine of up to 10 million yen (up from 3 million yen). Heavier penalties aim to strengthen investor protection.**