The Financial Services Agency (FSA) of Japan is moving to reclassify cryptocurrencies as "financial products" under the Financial Instruments and Exchange Act. This regulatory shift aims to ensure market integrity by applying stricter rules comparable to those governing traditional securities. A key pillar of this new regulation includes explicit prohibitions on insider trading based on non-public information. Currently, the legal framework for such enforcement in the crypto sector has been less defined compared to traditional equity markets. This legislative change indicates a maturing of the Japanese market, moving towards institutional-grade oversight. It is expected to enforce rigorous compliance standards on exchanges and issuers operating within the country.