Japan Cracks Down on Crypto Insider Trading with New Regulations
TOKYO – Japan’s Financial Services Agency (FSA) announced today, October 15, 2025, that it will implement new regulations prohibiting insider trading of cryptocurrencies. The rules, designed to align crypto market oversight with traditional financial products, will empower the FSA to levy surcharges on individuals and entities profiting from illegal transactions based on non-public information.
the move comes as cryptocurrency markets mature and attract increasing institutional investment, raising concerns about market manipulation and unfair advantages. By explicitly banning insider trading in the crypto space, Japan aims to bolster investor confidence and ensure a level playing field. The regulations will apply to anyone with access to privileged information regarding cryptocurrencies, including employees of exchanges, developers, and others with knowledge of upcoming listings, partnerships, or technological advancements. Violators will face financial penalties directly tied to the illicit gains they achieved through insider trading.
This regulatory step positions Japan as a leader in establishing a thorough legal framework for digital assets, following similar efforts to regulate crypto exchanges and stablecoins. The FSA believes these measures are crucial for fostering lasting growth and innovation within the cryptocurrency industry while protecting investors from fraudulent practices.
