Japan\'s cabinet has approved a bill to classify cryptocurrencies as financial products and bring crypto assets under the Financial Instruments and Exchange Act framework applied to securities such as stocks, Nikkei reported. If passed during the current Diet session, it could take effect as early as fiscal 2027. The rules would ban insider trading and require annual disclosures by issuers. Penalties for unregistered operations would rise, and the Securities and Exchange Surveillance Commission would gain expanded oversight powers.

Suspicions have resurfaced that Japan\'s prime minister\'s office had prior knowledge of a memecoin called Sanae Token. BeInCrypto reported on April 7 that market attention has shifted to whether the episode will accelerate or complicate a regulatory overhaul. The token, launched on Solana on Feb. 25, surged more than 40-fold before falling 58 percent after Sanae Takaichi denied being notified. Weekly Bunshun reported a developer said Takaichi\'s office was informed.