Japan has officially incorporated cryptocurrency into the mainstream framework of financial regulation. The Japanese Cabinet passed an amendment to the Financial Commodity Exchange Act today, which for the first time classifies encrypted assets as financial products and regulates them alongside traditional financial products such as stocks and bonds. This is a fundamental shift in positioning. Previously, the Financial Services Agency of Japan regulated cryptocurrencies under the Fund Settlement Act under the pretext of "payment methods". But as the use of cryptocurrency as an investment tool continues to expand, the old framework can no longer cover real needs, and regulatory logic is being rewritten accordingly. The new framework brings three core changes: insider trading is explicitly prohibited; The issuer shall disclose information annually; The institution's name has been changed from 'Crypto Asset Exchange Provider' to 'Crypto Asset Trading Provider'. The punishment intensity will be upgraded synchronously. The maximum imprisonment for unregistered sales institutions has been increased from 3 years to 10 years, and the maximum fine has been increased from 3 million yen to 10 million yen. If the bill is passed in this Congress, it is expected to be officially implemented as early as fiscal year 2027. Japan has always been at the forefront of cryptocurrency regulation in Asia. This legislation will completely bring cryptocurrencies into the mainstream financial regulatory system, which will have a profound impact on institutional entry, market transparency, and investor protection. Clear regulation is often a prerequisite for institutional funds to enter the market. Japan has taken this step very steadily.