Japan's Securities and Exchange Surveillance Commission (SESC) is set to introduce regulations to ban and penalize crypto insider trading, aligning it with stock trading rules. The SESC will be empowered to investigate suspicious activities and impose fines based on profits from insider trading, with criminal referrals for severe cases. Currently, there are no insider trading rules under the Financial Instruments and Exchange Act (FIEA) for crypto, prompting the need for stronger oversight. The Financial Services Agency (FSA) plans to discuss the regulatory framework details through a working group by the end of 2025, aiming to propose an amendment to the FIEA next year. This move comes as Japan's crypto user base has quadrupled to 7.88 million over five years. The anticipated leadership of pro-tech Sanae Takaichi as Japan's next prime minister could further influence the crypto sector, with her support for technological development and a more open stance toward tech experimentation.