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.
According to Sunday’s newspaper, the move would be a significant policy change, since current supervisory guidelines will, when revised in 2020 and implemented, ban banks from holding cryptocurrency due to its volatility risk. report Livedoor News –
The report states that the FSA will discuss this reform in a future meeting of Financial Services Council, a body which advises the Prime Minister. This initiative is aimed at aligning crypto asset management products with other traditional financial instruments like government bonds and stocks.
It is expected that regulators will explore a management framework to manage crypto-related risk, including sharp price swings which can impact the financial health of a banking institution. 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 also considers allowing banks to be registered as licensed “cryptocurrency exchange operators,” They can now offer direct trading and custody.
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, Sumitomo Mitsui Banking Corp. and Mizuho Bank have joined forces. issue a yen-pegged stablecoin The aim is to reduce transaction costs and streamline corporate settlements.
The Securities and Exchange Surveillance Commission of Japan plans to introduce new rules Ban and punish crypto insider trading.
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Source: cointelegraph.com
