Japan has amended itsmain financial law to tighten oversight of crypto assets. The governmentapproved changes to the Financial Instruments and Exchange Act on Friday(today), according to Nikkei.SingaporeSummit: Meet the largest APAC brokers you know (and those you still don't!).The amendmentclassifies crypto assets as financial instruments. This moves them away frombeing treated mainly as payment tools. They will now be regulated in a waysimilar to securities. The step follows plansoutlined in 2025 to bring crypto under the same law with disclosure andinsider trading rules.Japan Bans Insider Trading, RaisesPenaltiesUnder the revisedframework, insider trading in crypto assets is banned. The rule targets tradingbased on undisclosed information. Authorities have also increased penalties forunregistered crypto exchanges.The amendmentintroduces new disclosure requirements. Crypto “issuers” must publishinformation at least once a year. The measure is intended to improve markettransparency.Japan is alsopreparing for broader market integration. Plans call for allowing cryptoexchange-traded funds by 2028. Firms such as Nomura Holdings and SBI Holdingsare expected to develop related products.JUST IN: 🇯🇵 Japan officially approves bill to recognize cryptocurrency as a financial asset.— Watcher.Guru (@WatcherGuru) April 10, 2026Japan Signals Lower Tax, InstitutionalGrowthJapan’s FinancialServices Agency had previously overseen crypto under the Payment and SettlementAct. That framework focused on their use as a means of payment. The latestrevision reflects growing institutional activity in the sector.By reclassifyingcrypto assets, Japan is aligning them more closely with traditional financialmarkets. The move places them alongside instruments such as equities, withsimilar oversight standards.Finance Minister SatsukiKatayama outlined the policy direction after a Cabinet meeting. She said thegovernment will “expand the supply of growth capital” and “ensure marketfairness, transparency, and investor protection.”The shift builds onearlier signals from policymakers. In January, Katayama said “the role ofexchanges and market infrastructure will be essential” to ensure citizensbenefit from digital assets.Policy changes havealso extended to taxation. In December, the government backed plans to reducethe maximum tax rate on crypto profits to a flat 20%.This article was written by Tareq Sikder at www.financemagnates.com.