The Financial Services Agency of Japan (FSA), according to reports, is reviewing regulations to allow banks to hold and acquire cryptocurrencies like Bitcoin as investment.
A Sunday newspaper reported that the decision would represent a policy shift as, under current guidelines for supervisors, which will be revised in 2020 due to risks of volatility, banks are effectively prohibited from holding crypto. report Livedoor News –
The report states that the FSA will discuss this reform in a future meeting of Financial Services Council, a Prime Minister’s advisory group. The goal of the initiative is to integrate crypto asset-management with other financial products such as stocks and government securities.
The regulators are likely to examine a framework that can be used for a management of crypto-related risk, including price fluctuations which could have a negative impact on a bank’s financial stability. Before allowing banks to store digital assets, the FSA is likely to impose requirements for capital and risk management.
Related: New Japan PM may boost crypto economy, ‘refine’ blockchain regulations
Japan will allow banks to operate crypto exchanges licensed by the government
FSA may also allow bank groups to become licensed “cryptocurrency exchange operators,” This allows them to directly offer services such as trading and custodial.
According to FSA statistics, the Japanese crypto market is growing rapidly. As of February 2025 there were more than 12,000,000 crypto accounts, which was 3.5 times greater than it had been five years earlier.
FSA started its September campaign at the beginning of the month. sought to place crypto regulation under the Financial Instruments and Exchange Act (FIEA), shifting it from the Payments Services Act to strengthen investor protection and align crypto with securities laws.
According to the regulator, many crypto-related issues are similar to those that have traditionally been addressed by FIEA. Therefore, it could be beneficial to use similar enforcement mechanisms.
Related: Japan’s new PM may be a boon for risk assets, crypto markets
Japan’s leading banks launch stablecoin pegged to the yen
Mitsubishi UFJ Financial Group MUFG, Sumitomo Mitsui Banking Corp. SMBC and Mizuho Bank are three of Japan’s biggest banks. issue a yen-pegged stablecoin The aim is to reduce transaction costs and streamline corporate settlements.
Japan’s Securities and Exchange Surveillance Commission plans to introduce new rules Ban and punish crypto insider trading.
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Source: cointelegraph.com
