Japan plans to classify cryptocurrencies as financial products — Nikkei

Nikkei reports that Japan's Financial Services Agency (FSA) will submit a bill on the classification of cryptocurrencies as financial products to the country's parliament as early as 2026.

Crypto-assets may become subject to local laws dealing with insider trading. The rules apply to other financial products, such as securities, and prohibit transactions based on nonpublic information.

If the bill is passed by the Japanese parliament, businesses handling cryptocurrencies will be required to register with the FSA. The new rules will apply to both overseas and local companies, Nikkei highlights. 

However, it is still unclear which cryptocurrencies will fall under the law and how distinctions will be made between widely traded assets, such as Bitcoin and Ethereum, and high-risk meme coins.

Additionally, in February, local media reported on the FSA's intention to lift the ban on cryptocurrency exchange-traded funds (ETFs) in Japan.