Japan’s FSA May Let Banks Hold Bitcoin and Other Cryptocurrencies

Japan’s Financial Services Agency (FSA) is considering regulatory reforms that could permit banks to hold cryptocurrencies like Bitcoin and operate licensed crypto exchanges. This change would represent a significant shift from the current guidelines, which restrict banks from holding digital assets due to their volatility risks. According to reports, the FSA plans to discuss this initiative at an upcoming Financial Services Council meeting, aiming to bring crypto asset management in line with traditional financial products, such as stocks. If the reforms are approved, banks may face capital and risk management requirements to safely hold digital assets. Additionally, the FSA is exploring enabling bank groups to register as licensed cryptocurrency exchange operators, thus allowing them to provide trading and custody services directly to clients. With over 12 million crypto accounts registered by February 2025, the move is seen as a way to bolster the growing crypto market in Japan.

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