Japan’s Financial Services Agency (FSA) is reportedly considering a major policy shift that could allow domestic banks to buy, sell, and hold cryptocurrencies — a move that would mark a significant step toward integrating digital assets into the country’s mainstream financial system.
According to Yomiuri Shimbun, the FSA is reviewing its current supervisory guidelines, which currently prohibit Japanese banks from owning cryptocurrencies due to concerns over price volatility. The proposed reforms aim to establish a framework that would treat crypto trading similarly to transactions involving stocks or government bonds.
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The potential changes would come with strict regulatory safeguards designed to minimize financial risks. The FSA plans to discuss the proposal at an upcoming meeting of the Financial Services Council, an advisory body to the Prime Minister. If approved, the reforms could reshape Japan’s approach to digital assets and expand the role of traditional banking institutions in the crypto market.
In addition, the agency is said to be exploring the possibility of allowing banks to register as licensed crypto exchanges. This would make it easier for retail investors to access digital assets through regulated and trusted financial institutions, potentially boosting participation in Japan’s crypto market while maintaining consumer protection standards.
The FSA’s broader effort also includes tightening oversight of digital asset trading practices. Reports suggest the agency intends to introduce amendments explicitly banning insider trading based on non-public information, with violators facing fines proportional to their profits from such illicit activity.
Staff Writer
If implemented, these changes could strike a balance between innovation and investor protection, signaling Japan’s readiness to evolve its financial regulations in step with the global digital economy.
