Panel Calls for Placing Crypto Assets under Financial Instruments Law

Tokyo, Nov. 26 (Jiji Press)–A working group of the Financial System Council, which advises Japan’s prime minister, on Wednesday broadly approved a draft report calling for crypto assets to be subject to the financial instruments and exchange law. This measure is expected to help prevent insider trading, enhance measures against illegal asset outflows and strengthen user protection measures, at a time when crypto assets are becoming increasingly popular investment products. Currently, crypto assets are considered a means of settlement and are regulated by the payment services law. The Financial Services Agency plans to submit a bill revising the financial instruments and exchange law to next year’s ordinary session of the Diet. The draft report emphasizes the growing need to strengthen measures against insider trading of crypto assets. It argues that unfair transactions, including insider trading, should be investigated by the Securities and Exchange Surveillance Commission. It also calls for creating a fine system. Crypto exchange operators are expected to be asked to set up reserves to compensate users if their assets are compromised due to cyberattacks. Businesses that issue crypto assets to raise funds are likely to be required to disclose information annually, including how the funds are used. END [Copyright The Jiji Press, Ltd.]