Insider Trading in Crypto? Japan Says New Rules Are Coming

Written by Aaron S.,

Editor-In-Chief

Last Updated: October 15, 2025

Key Takeaways

Japan plans to introduce new laws treating crypto insider trading like stock market violations, with fines and possible criminal charges;
The SESC will be given the power to investigate suspicious cryptocurrency trades and enforce penalties;
Japan’s financial agency aims to revise its laws by 2025 to better monitor misconduct in crypto markets.

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Japan is preparing to introduce rules aimed at stopping the misuse of confidential information in cryptocurrency trading.

These upcoming regulations are expected to treat such behavior similarly to insider trading in the stock market.

According to a report by Nikkei Asia on October 14, the Securities and Exchange Surveillance Commission (SESC) will be given the authority to investigate crypto trades that appear suspicious.

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If someone is found to have made unfair profits through inside knowledge, they could face financial penalties based on the amount gained. In serious situations, the SESC would also be able to refer cases for criminal prosecution.

Currently, Japan’s main financial law, the Financial Instruments and Exchange Act (FIEA), does not cover insider activity in the crypto industry.

Additionally, the Japan Virtual and Crypto Assets Exchange Association, the industry group overseeing crypto exchanges, lacks a system to detect unusual trading behavior.

These gaps have made it difficult to monitor and respond to potential misconduct, which prompts the need for government-led action.

To address this, the Financial Services Agency (FSA), which supervises the SESC, plans to discuss the details of the proposed rules through a working group. Their aim is to prepare an amendment to the FIEA by the end of 2025, which would then be submitted for legal approval.

Meanwhile, the United Kingdom’s Financial Conduct Authority (FCA) recently removed its ban on cryptocurrency exchange-traded notes (ETNs). What did David Geale say? Read the full story.