Japan’s FSA weighs allowing banks to hold Bitcoin, other cryptos: Report

Japan’s Financial Services Agency (FSA) is reportedly preparing to reappraisal regulations that could let banks to get and clasp cryptocurrencies specified arsenic Bitcoin for concern purposes.

The determination would people a large argumentation shift, arsenic existent supervisory guidelines, revised successful 2020, efficaciously prohibition banks from holding crypto owed to volatility risks, according to a Sunday report from Livedoor News.

Per the report, the FSA plans to sermon the betterment astatine an upcoming gathering of the Financial Services Council, an advisory assemblage to the Prime Minister. The inaugural aims to align crypto plus absorption with accepted fiscal products similar stocks and authorities bonds.

Regulators are expected to research a model for managing crypto-related risks, specified arsenic crisp terms swings that could interaction a bank’s fiscal health. If approved, the FSA volition apt enforce superior and risk-management requirements earlier permitting banks to clasp integer assets.

Related: New Japan PM whitethorn boost crypto economy, ‘refine’ blockchain regulations

Japan whitethorn fto banks run licensed crypto exchanges

The FSA is besides considering allowing slope groups to registry arsenic licensed “cryptocurrency speech operators,” enabling them to connection trading and custody services directly.

Japan’s crypto marketplace continues to turn rapidly, with much than 12 cardinal crypto accounts registered arsenic of February 2025, astir 3.5 times higher than 5 years ago, according to FSA data.

At the commencement of September, the FSA sought to spot crypto regulation under the Financial Instruments and Exchange Act (FIEA), shifting it from the Payments Services Act to fortify capitalist extortion and align crypto with securities laws.

The regulator said that galore issues wrong crypto lucifer those traditionally addressed nether the FIEA, truthful it whitethorn beryllium due to use akin mechanisms and enforcement.

Related: Japan’s caller PM whitethorn beryllium a boon for hazard assets, crypto markets

Japan’s apical banks to motorboat yen-pegged stablecoin

Three of Japan’s largest banks, including Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Banking Corp. (SMBC) and Mizuho Bank, person joined forces to issue a yen-pegged stablecoin aimed astatine streamlining firm settlements and reducing transaction costs.

Meanwhile, Japan’s Securities and Exchange Surveillance Commission plans to present caller rules to prohibition and penalize crypto insider trading.

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