Japan’s Financial Services Agency could soon reshape the relationship between banks and cryptocurrencies.
According to local media reports on October 19, Japan’s Financial Services Agency (FSA) is considering allowing domestic banks to trade and hold bitcoin and other digital assets.
As reported by the Yomiuri Shimbun newspaper, the financial watchdog intends to launch discussions to reform the current guidelines that prohibit national credit institutions from owning digital assets.
The goal of the proposed regulatory reform is to establish a system that would allow Japanese banks to buy and sell bitcoin and other cryptocurrencies in a way similar to how they currently trade stocks and government bonds.
The FSA is also evaluating the possibility of authorizing banks to register directly as exchanges. This move would aim to simplify crypto market access for retail investors.
The proposal under discussion includes the creation of specific regulatory safeguards designed to mitigate financial risks linked to the potential regulatory update. The issue will be addressed in an upcoming meeting of the Financial Services Council, an advisory body to the Prime Minister.
In parallel with this opening, Japan’s Financial Services Agency is stepping up its efforts to ensure the integrity of the digital asset market. According to reports, the FSA is preparing to introduce regulatory amendments that would explicitly ban trading based on non-public information. The new rules would impose financial penalties proportional to the illicit profits obtained by offenders.
