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 storing crypto because of volatility risks. report Livedoor News is a service of Livedoor.
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 traditional financial products such as stocks and government securities.
The regulators are likely to examine a framework that can be used for managing crypto risks such as 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.
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FSA may also allow bank groups to become licensed “cryptocurrency exchange operators,” This allows them to directly offer services such as trading and custodial.
The Japanese cryptomarket continues to grow quickly. More than 12 million accounts were registered in February 2025. This is about 3.5-times higher than the five-year average, according to FSA figures.
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.
It was noted that crypto issues resembled those previously addressed by the FIEA and it might be useful to implement similar enforcement measures.
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Source: cointelegraph.com
