Japan’s finance regulator is planning to change the country’s laws to classify cryptocurrencies as financial products as early as 2026, according to the local outlet Nikkei.

The Financial Services Agency (FSA) plans to submit a bill to parliament to revise the Financial Instruments and Exchange Act as early as next year after having considered the changes through internal study groups, Nikkei reported on March 30 without citing a source.

The outlet reported that the details are still being finalized, but the change would see cryptocurrencies likely put under insider trading laws that currently apply to other financial products, such as stocks, which outlaw trades based on insider information.

However, cryptocurrencies are likely to be put in a separate category from securities such as stocks and bonds.

If the changes go through and crypto is regulated under the country’s finance laws, companies offering crypto would have to register with the FSA.

Nikkei reported that the regulator plans to enforce the new rules regardless of whether a company operates in Japan, but it was unclear how the laws would be enforced against overseas entities.

Also unclear was what cryptocurrencies would be regulated and how distinctions would be made between widely traded assets such as Bitcoin (BTC) and Ether (ETH) compared to speculative and high-risk tokens such as memecoins.

The FSA’s headquarters is in central Tokyo, just across the street from the Ministry of Finance. Source: Wikimedia

The reported upcoming change comes amid a wave of pro-crypto moves made by Japan’s regulators and government.

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Earlier this month, the country issued its first license allowing a company to deal with stablecoins to SBI VC Trade, a subsidiary of the local financial conglomerate SBI, which said it was preparing to support Circle’s USDC (USDC).

The country’s ruling Liberal Democracy Party also moved ahead with reforms to slash the capital gains tax on crypto from 55% to 20% and categorize digital assets as a distinct asset class.

In February, local reports said the FSA was looking to lift a ban on crypto-based exchange-traded funds (ETFs) to align with the policy position of Hong Kong, which approved crypto ETFs for trading in April 2024.

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Crypto exchange users in South Korea have crossed over 16 million after receiving a boost following US President Donald Trump’s election win last November. 

Data submitted to representative Cha Gyu-geun of the minor opposition Rebuilding Korea Party found over 16 million people had crypto exchange accounts out of a total population of 51.7 million, according to a March 30 report from local news agency Yonhap. 

This would be equivalent to over 30% of the population. 

All the data was taken from the top five domestic virtual exchanges in South Korea: Upbit, Bithumb, Coinone, Korbit and Gopax. Individuals with multiple accounts were only counted once.

Industry officials are reportedly speculating the number of crypto users could hit 20 million by the end of the year, with one unnamed official being cited by Yonhap saying:

“Some believe the crypto market has reached a saturation point, but there is still an endless possibility for growth compared with the matured stock market.” 

Following Trump’s election win last November, the number of crypto users spiked by over 600,000 to 15.6 million, collectively holding 102.6 trillion South Korean won ($70.3 billion) in crypto assets.

Investors in South Korea’s crypto market had 102.6 trillion South Korean Won ($70.3 billion) in crypto assets as of last December. Source: Yonhap News

The number of crypto investors exceeded 14 million in March 2024, according to Yonhap.

Meanwhile, Korea’s Securities Depository shows only 14.1 million listed individual investors in the stock market as of December last year, according to the South Korean financial publication the Maeil Business Newspaper.

Related: South Korea inches closer to Bitcoin ETF decision, looks to Japan as example

South Korean public officials have also reported holding and investing in crypto. 

The country’s Ethics Commission for Government Officials disclosed on March 27 that 20% of surveyed public officials hold 14.4 billion won ($9.8 million) in crypto, representing 411 of the 2,047 officials subjected to the country’s disclosure requirements to hold crypto assets. 

The highest amount disclosed was 1.76 billion won ($1.2 million) belonging to Seoul City Councilor Kim Hye-young. 

Meanwhile, on March 26, the Financial Intelligence Unit of the South Korean Financial Services Commission published a list of 22 unregistered platforms and 17 that were blocked from the Google Play store. 

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A Californian lawmaker has just added Bitcoin and crypto investor protections to a February-introduced money transmission bill aimed at securing crypto self-custody rights for the US state’s nearly 40 million residents.

California’s Assembly Bill 1052 was introduced as the Money Transmission Act on Feb. 20, 2025, but was amended by Democrat and Banking and Finance Committee chair Avelino Valencia on March 28 to include several Bitcoin (BTC) and crypto-related investor protections.

The amendments cross out “Money Transmission Act,” with the legislation now called “Digital assets.”

“California often sets the national blueprint for policy, and if Bitcoin Rights passes here, it can pass anywhere,” Satoshi Action Fund CEO Dennis Porter said in a March 30 statement.

“Once passed, this legislation will guarantee nearly 40 million Californians the right to self-custody their digital assets without fear of discrimination.”

Source: Satoshi Action Fund

The bill would also deem the use of a digital financial asset as a valid and legal form of payment in private transactions and would prohibit public entities from restricting or taxing digital assets solely based on their use as payment.

The bill would also expand the scope of California’s Political Reform Act of 1974 to prohibit a public official from issuing, sponsoring or promoting a digital asset, security or commodity.

“A public official shall not engage in any transaction or conduct related to a digital asset that creates a conflict of interest with their public duties,” one section of the AB 1052 states.

AB 1052 is now in the “desk process” — meaning the bill has been formally introduced and is awaiting its first reading.

A total of 99 merchants currently accept Bitcoin payments in California, BTC Maps data shows.

Ripple Labs, Solana Labs and Kraken are among the largest crypto firms based in California.

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A stablecoin-related bill was also introduced in California on Feb. 2, 2025, which aims to provide more clarity over stablecoin collateral requirements, liquidation processes, redemption and settlement mechanisms requirements and security audits.

Bitcoin-related bills and measures near 100 at the US state level

According to Bitcoin Law, 95 Bitcoin-related bills or measures have been introduced at the state level in 35 states, including 36 Bitcoin reserve bills that are still live.

The Texas Senate passed a Bitcoin strategic reserve bill in a 25-5 vote on March 6, while Kentucky Governor Andy Beshear signed a Bitcoin Rights bill into law on March 24.

Earlier this month, US President Donald Trump signed an executive order to create a Strategic Bitcoin Reserve and a Digital Asset Stockpile, both of which will initially use cryptocurrency forfeited in government criminal cases.

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