A digital asset
investment fund
Viska is an alternative investment fund based in Iceland that invests in digital assets.
Viska is an alternative investment fund based in Iceland that invests in digital assets.
Japan has been steadily advancing efforts to incorporate digital assets into its financial system. Rather than moving hastily, the country appears focused on building a clear and compliant regulatory framework—one that supports responsible growth within the crypto industry.
Japan’s Financial Services Agency (FSA) plans to reclassify crypto assets as financial products under the country ’s Financial Instruments and Exchange Act.
Digital assets before this change are classified as ´´miscellaneous income´´, further complicating matters for those who are interested in exposure to cryptocurrencies. This is set to change once the amendment is made to the Financial Instruments and Exchange Act.
This reclassification would subject digital assets to similar rules as traditional securities, like stocks or bonds. It would allow authorities to enforce laws against insider trading in the crypto markets as well—something that has previously existed within more of a legal grey area.
The FSA is expected to formally propose amendments to the Financial Instruments and Exchange Act as early as 2026. If passed, the updated law would strengthen investor protections, enhance regulatory clarity, and lay a stronger foundation for institutional involvement in the crypto market. A lack of clear regulatory frameworks has long been cited by investors as a key reason for hesitating to enter the crypto space to begin with—making Japan’s recent developments a promising step toward fostering greater institutional participation and market growth.
According to Nikkei, Japan had roughly 7.34 million active accounts for crypto trading as of January 2025.
Closely related to the regulatory update, Japan is also aiming to outlaw insider trading involving cryptocurrencies.
Why it matters:
Currently, insider trading laws only apply to traditional securities. By extending these rules to digital assets, Japan would become one of the first major countries to formally legislate against unfair practices in crypto markets. This would not only improve market integrity but also help attract more serious investors.
It sends a strong message that Japanese regulators now see digital assets more as a financial products, deserving of the same protections as legacy instruments.
SMBC, Japan’s second-largest bank, is exploring a stablecoin launch through a partnership with Ava Labs (developers of Avalanche and Fireblocks).
Sumitomo Mitsui Banking Corporation is exploring stablecoins and is set to begin trials later this year according to The Block.
Why it matters:
The project is focused on issuing legally compliant stablecoins that can be used for settlement of tokenized real-world assets—such as government bonds, corporate bonds, and real estate. Testing is set to begin in the second half of 2025.
This is more than a tech experiment; it represents a traditional bank actively participating in the next generation of digital finance. If successful, SMBC’s stablecoin could potentially become a model for how other regulated banks globally issue and use digital currencies
All of these actions point toward the same conclusion: Japan is making coordinated and meaningful progress in embracing crypto.
Japan was once considered a crypto pioneer, but after many regulatory setbacks, the country slowed down. Now, it’s accelerating again, and doing so in a more structured, mature way.
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