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.
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 is a service of Livedoor.
The report states that the FSA will discuss this reform in a future meeting of Financial Services Council – an advisory group to 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 may also allow bank groups to become 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.
It was noted that crypto issues are often similar to FIEA-related ones, and it is possible for enforcement methods to be applied.
Related: Japan’s new PM may be a boon for risk assets, crypto markets
Japan’s Top Banks to Launch Yen-Pegged Stablecoin
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 Aiming to streamline corporate settlements, and reduce transaction costs.
Japan’s Securities and Exchange Surveillance Commission plans to introduce new rules Ban and punish crypto insider trading.
Magazine: Back to Ethereum — How Synthetix, Ronin and Celo saw the light
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: cointelegraph.com
