The top financial watchdog in Japan is preparing a set of new rules to ban insider trading in cryptocurrencies.
According to an article published by Nikkei Asia on 15 October 2025, the government will give the Securities and Exchange Surveillance Commission (SESC), authority to investigate suspicious trades and recommend penalties or criminal charges when trades are based on undisclosed information.
So far, Japan’s insider trading laws have not covered crypto assets, which fall under the Financial Instruments and Exchange Act (FIEA).
The Financial Services Agency has announced plans to introduce a ban on insider trading for digital assets, a practice that is currently not illegal under the country's Financial Instruments and Exchange Act. #Japan #cryptohttps://t.co/FsneLmwUXu
— thehodlernews.com (@thehodlernews) October 15, 2025
The Financial Services Agency (FSA), which oversees the SESC, plans to finalize the framework by this year’s end and submit amendments to the FIEA in the regular parliamentary session next year.
Till now, Japan has relied on crypto exchanges and the Japan Virtual and Crypto Assets Exchange Association (JVCEA) to self-regulate. However, insiders believe that these measures are not enough because the current system does not track trading activity to the level that is required.
With the SESC now taking charge of oversight, the goal is to create a more transparent and fair trading environment that makes crypto more attractive as an investment in Japan.
Under the proposed framework, the nation's financial watchdog, the SESC, will be empowered to probe suspected cases and levy fines commensurate with illicit profits. #Japan #cryptohttps://t.co/0LIUswE5nP
— cryptocurrenciesnewz.com (@ccurrenciesnewz) October 15, 2025
The first step being considered is to clearly state that trading crypto based on non-public information is illegal.
Once that’s in place, the FSA will issue guidelines to define what types of behavior it will cover. For instance, the regulators will likely ban trading based on knowledge of upcoming exchange listings or security flaws before they disclose them publicly.
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With Limited Experience, Japan Struggles To Define Crypto Insider Trading
Defining insider trading in crypto is easier said than done. Japan is still new to handling insider trading in the crypto space, especially compared to stocks and bonds, which have clearer rules around events like mergers or disasters.
According to the article, even the European Union’s (EU) crypto rules introduced in 2024 don’t clearly define what counts as an insider activity.
Meanwhile, crypto in Japan is booming. In August this year, Japan had 7.88 million active crypto accounts, a 4x growth compared to five years ago.
Originally, regulators treated crypto as a payment tool and regulated it under the Payment Services Act. But now, with more people using it for investment, Japan plans to shift oversight to FIEA, which is more focused on protecting investors and ensuring market transparency.
Globally however, insider trading and fraud in crypto have become more common, with the International Organization of Securities Commissions (IOSCO) calling for stronger rules to prevent market abuse after a case in 2022, where Coinbase executives leaked sensitive information to their friends and family members.
South Korea and the EU have already implemented stronger rules, and Japan is preparing to follow in their footsteps.
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Trump Tariff Sparks Crypto Crash: Whale Mints Million In Minutes Sparking Insider Trading Concerns
10 October 2025 was a bloodbath in the crypto landscape. Many people lost their fortunes with reportedly 250 wallets losing their crypto millionaire status. However, one wallet minted millions, sparking insider trading speculations.
The whale placed a suspiciously well timed BTC short worth $750 million on
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Hyperliquid
2.04%
Hyperliquid
HYPE8
Price
$40.95
2.04% /24h
Volume in 24h
$1.03B
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just before the big liquidation event, raising eyebrows in the crypto space.
A whale has opened a $750M, 10x leveraged $BTC short position. It's already $3.7M in the red and will be liquidated if $BTC climbs above $130,800.
What do they know?
pic.twitter.com/GbJwoXw54e
— Bitcoin Titan (@BitcoinTitann) October 10, 2025
The connection triggered online debate over whether the White House, President Donald Trump, or insiders caused trader liquidations or are trying to boost Hyperliquid’s visibility.
Word quickly spread, with X sleuths linking the whale wallet back to Garret Jinn, who incidentally holds another long position, “Will Trump pardon CZ in 2025?” on Polymarket.
Analysts on X argue that it is no coincidence that Jinn placed a major short on BTC just before Trump’s tariff announcement, while also holding a long position tied to White House decisions.
Garrett Jin has had one position open on Polymarket and has been buying for the last few weeks:
Yes shares on `Will Trump Pardon Changpeng Zhao in 2025?`
Now Trump is thinking about pardoning him.
Jin is connected to the Billion Dollar Bitcoin Whale selling on HyperUnit pic.twitter.com/UIId1byDkI
— Emmett Gallic (@emmettgallic) October 10, 2025
However, so far there’s no solid evidence connecting Trump or the White House to the trades.
Jinn, on his behalf, was quick to share that the wallet belonged to one of his clients and not to him personally, further clarifying that he has no connection with the Trump family with the president himself.
The fund isn’t mine — it’s my clients’. We run nodes and provide in-house insights for them.
— Garrett (@GarrettBullish) October 13, 2025
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Key Takeaways
- Japan plans to ban insider trading in crypto under updated financial regulations
- The SESC will investigate suspicious trades and recommend penalties or criminal charges
- FSA aims to finalize the framework by year-end and submit it next session
The post Inside Japan’s Plan To Take Down Insider Trading: Is This The End of Crypto Manipulation? appeared first on 99Bitcoins.
