-
Japan’s FSA may soon allow local banks to buy, sell, and hold cryptocurrencies.
-
The regulator is discussing allowing banks to register as crypto exchanges.
-
The move would further integrate traditional finance with digital assets.
Regulatory Shift Under Discussion
Japan’s Financial Services Agency (FSA) is exploring major reforms that would allow banks to directly hold and trade cryptocurrencies, according to local reports. The regulator plans to review current restrictions that prevent banks from owning digital assets due to volatility risks.
The proposal aims to treat cryptocurrencies more like traditional financial instruments, including stocks and bonds, while introducing safeguards to manage risk.
Banks Could Become Exchanges
The FSA is also considering allowing banks to register as crypto exchanges, a move that would let retail investors trade digital assets through trusted banking platforms. This could bring new legitimacy to Japan’s crypto market, which is already one of the most heavily regulated in Asia.
Part of Broader Oversight Reform
The discussion follows the agency’s plans to ban insider trading based on non-public crypto information. Together, these measures indicate Japan’s intent to modernize its financial system while maintaining strong investor protection and regulatory clarity.
