"Japan's Financial Services Agency (FSA) is reportedly considering reforms that would allow domestic banks to acquire and hold digital assets, including Bitcoin, for investment purposes. This would be a drastic move away from the conservative stance established in 2020, when local banks were barred from holding crypto due to concerns over volatility and financial stability. Under the proposed framework, banks could trade digital assets similarly to stocks and government bonds, with specific safeguards designed to ensure their financial soundness."
"The FSA plans to develop risk management protocols to mitigate the potential impact of sudden price swings on banks' balance sheets. The reforms are expected to be discussed soon at a working group meeting of the Financial System Council, an advisory body to the Prime Minister. Officials are reportedly examining mechanisms that would allow banking groups to register as licensed cryptocurrency exchange operators."
"Back in 2020, Japan enforced strict crypto rules through amendments to the Payment Services Act (PSA) and the Financial Instruments and Exchange Act (FIEA). These laws established a comprehensive framework governing crypto asset service providers, custodial businesses, and derivatives trading. By involving established banks, regulators hope to create a safer environment for crypto investment while expanding access to digital assets across Japan."
Japan's Financial Services Agency is considering reforms to permit domestic banks to acquire, hold, and trade digital assets such as Bitcoin for investment, reversing a 2020 prohibition. The proposed framework would treat crypto similarly to stocks and government bonds while imposing safeguards and risk management protocols to protect banks' balance sheets from sudden price swings. The reforms may be discussed at a Financial System Council working group, and regulators are examining mechanisms for banking groups to register as licensed cryptocurrency exchange operators. The move aims to create a safer crypto environment, broaden investor access, and provide alternative return avenues amid high national debt and economic pressures.
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