Japan's Financial Services Agency Plans Strict Punishment for Unregistered Crypto Sales, Proposing Maximum Prison Term of 10 Years

MarsBitNews · 2026-03-16T11:04:27+00:00

Japan's Financial Services Agency plans to strengthen oversight of unregistered cryptocurrency operators by transferring relevant regulations to the Financial Instruments and Exchange Act, increasing criminal penalties, and empowering surveillance committees to conduct on-site inspections and evidence seizures, aimed at enhancing investor protection.

MarsBitNews

2026-03-16 11:04:27

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Mars Finance reports that, according to Nikkei News, Japan’s Financial Services Agency (FSA) plans to strengthen penalties and regulation for unregistered cryptocurrency operators. The plan proposes moving regulations related to crypto assets from the Payment Services Act to the Financial Instruments and Exchange Act to enhance investor protection. For operators selling crypto assets without registration, criminal penalties are expected to increase from the current “up to 3 years imprisonment or fines of up to 3 million yen” to “up to 10 years imprisonment or fines of up to 10 million yen (or both).” Additionally, the Securities and Exchange Surveillance Commission will be authorized to conduct mandatory on-site inspections and seize evidence during criminal investigations. The legal name for registered operators is expected to change from “crypto asset exchange operator” to “crypto asset trading operator.” This move is in response to the increasing disputes related to highly speculative Meme tokens.

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