Japan’s Financial Services Agency is said to be preparing a review of regulations which could allow for 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 storing crypto because of volatility risks. report Livedoor News –
According to the report, FSA intends to bring up the topic of reform during a meeting with the Financial Services Council (an advisory group to the prime minister). 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. The FSA may impose risk management and capital requirements to banks before allowing them to own digital assets.
Related: New Japan PM may boost crypto economy, ‘refine’ blockchain regulations
Japan could allow licensed banks to run crypto exchanges
FSA also considers allowing banks to be registered as 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 12,000,000 accounts were registered in February 2025. This is about 3.5-times higher than just five years before, 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.
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 Top Banks to Launch Yen-Pegged Stablecoin
Mitsubishi UFJ Financial Group, Sumitomo Mitsui Banking Corp. and Mizuho Bank have teamed up to form a new bank. issue a yen-pegged stablecoin The aim is to reduce transaction costs and streamline corporate settlements.
Japan’s Securities and Exchange Surveillance Commission plans to introduce new rules To penalize and ban crypto insider trading.
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Source: cointelegraph.com
