Japan’s Financial Services Agency is said to be preparing to revise regulations which could permit banks to purchase and hold cryptocurrency such as Bitcoin to invest in.
A Sunday newspaper reported that the decision would represent a policy shift as, under current guidelines for supervisory guidance, which will be revised in 2020 due to risks associated with volatility, banks are effectively prohibited from holding crypto. report Livedoor News –
According to the report, FSA intends to bring up the topic of reform during a meeting with the Financial Services Council (a body that advises the Prime Minister). The goal of the initiative is to integrate crypto asset-management with traditional financial products such as stocks and government securities.
It is expected that regulators will explore a system for managing crypto risks such as price spikes, which can have an impact on the financial health of a banking institution. The FSA may impose risk management and capital requirements to banks before allowing them to own digital assets.
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Japan could allow licensed banks to run crypto exchanges
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.
The FSA began its work in September. 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.
It was noted that crypto issues are often similar to FIEA-related ones, and it is possible for enforcement methods and mechanisms to be applied in a similar way.
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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
