Japan's FSA mulls moving crypto regulation under securities law

Japan's Financial Services Agency (FSA) has announced it is considering shifting its cryptocurrency regulatory framework from the Payment Services Act (PSA) to one based on the Financial Instruments and Exchange Act (FIEA). According to Cointelegraph, the move would strengthen disclosure requirements for Initial Exchange Offerings (IEOs). Exchanges would be required to pre-disclose information on the issuing entity, token structure, and code audit results. Projects, regardless of their decentralization status, would also need to provide details on their issuance, distribution methods, and operating entities. The regulatory overhaul would also include expanded enforcement authority over unregistered overseas platforms and decentralized exchanges (DEXs), as well as an explicit ban on insider trading.