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 investing in crypto because of volatility risk. report Livedoor News is a service of Livedoor.
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). This initiative is aimed at aligning crypto asset management products with other traditional financial instruments like government bonds and stocks.
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. 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,” 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-based problems, and it is possible for the same enforcement methods to be used.
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The Securities and Exchange Surveillance Commission of Japan plans to introduce new rules To penalize and ban crypto insider trading.
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Source: cointelegraph.com
