Japan’s Financial Services Agency (FSA) is reportedly considering a regulatory update that would allow bank groups to buy, hold, and trade cryptocurrencies. The proposal, expected to be presented at a Financial Services Council working group meeting, aims to treat digital assets more like traditional financial instruments such as stocks and bonds.
Potential Impact on Banking and Investment
If approved, banks could register as cryptocurrency exchange operators, enabling them to offer trading services to retail and institutional clients. The move could increase investor confidence by integrating crypto into established banking frameworks and providing additional oversight to prevent fraud or market abuse.
Broader Crypto Strategy and Market Outlook
The initiative aligns with Japan’s broader crypto strategy, including plans to finalize crypto trading rules, issue a yen-backed stablecoin, and support corporate Bitcoin treasuries. Market watchers will be monitoring how these regulations may impact adoption and liquidity in the Japanese crypto market.