Japan's Financial Services Agency (FSA) is preparing to revise regulations that will allow banks to acquire and hold cryptocurrencies for investment purposes.
GetBlock Magazine - Main Points:
-The FSA is preparing to revise regulations to allow banks to acquire and hold cryptocurrencies.
-The reform will equate crypto assets with traditional financial instruments and establish risk management rules.
-The FSA is considering allowing banking groups to operate licensed crypto exchanges.
According to Livedoor News, the FSA plans to discuss the reform at an upcoming meeting of the Financial Services Council, an advisory body to the Prime Minister. This initiative aims to align the management of crypto assets with traditional financial products such as stocks and government bonds.
Regulators are expected to examine the risk management system associated with cryptocurrencies, which could impact a bank's financial position. If approved, the FSA will impose capital and risk management requirements before allowing banks to hold digital assets.
Banks May Be Allowed to Operate Cryptocurrency Exchanges. The FSA is also considering allowing banking groups to register as licensed crypto exchange operators, allowing them to directly provide trading and custody services.
The Japanese cryptocurrency market continues to grow rapidly: as of February 2025, more than 12 million cryptocurrency accounts were registered, approximately 3.5 times more than five years ago, according to the FSA.
At the same time, the FSA is preparing amendments that will prohibit insider trading in cryptocurrencies. These measures will treat crypto assets as securities and allow for investigations into cases of using undisclosed information for transactions.
Japan will become the first major economy to extend market integrity standards to the crypto market. The legislative framework will be completed in 2025, and parliamentary consideration of the amendments is scheduled for 2026.