Japan lights up green traffic signals for cryptocurrencies.

Japan is heading towards a radical transformation in the cryptocurrency market, as the Financial Services Agency plans to grant these assets a legal status equivalent to traditional financial products, in a move that could reshape the digital investment landscape in the country. According to the Nikkei economic newspaper, the agency is reviewing the Financial Instruments and Exchange Act to ensure the regulation of cryptocurrencies within a clear legal framework, subjecting them to strict trading restrictions, including prohibiting trading based on undisclosed insider information, enhancing transparency, and protecting investors from manipulation. The agency intends to submit a bill amending current legislation to the parliament by 2026, potentially paving the way for a new phase of official recognition of cryptocurrencies within the Japanese financial system, amid growing global interest in this expanding sector.