Japan's Lower House Passes Bill to Regulate Crypto Assets Like Stocks, New Rules Expected Next Year

According to CoinDesk, Japan's lower house recently passed legislation to regulate cryptocurrencies under the Financial Instruments and Exchange Act, bringing digital assets closer to the regulatory framework governing stocks and other investment products. The new rules are expected to take effect next year and will classify crypto assets as financial instruments.

The law introduces insider trading prohibitions similar to stock market rules, enhanced information disclosure requirements, and a potential pathway for launching crypto asset ETFs. The legislation also imposes investment caps on unaudited token offerings and significantly increases penalties for unregistered crypto business operators.