 
 
Japan’s Financial Services Agency (FSA) is reportedly considering reforms that would allow banks to buy and hold cryptocurrencies such as Bitcoin for investment purposes.
According to a Sunday report from Livedoor, discussions on potential regulatory revisions are expected to kick off at an upcoming meeting of the Financial System Council, an advisory body to the Prime Minister.
Regulators are expected to introduce regulations for managing crypto-related risks, such as wild price swings that could affect a bank’s financial stability. If approved, the FSA will likely impose capital and risk-management requirements before allowing banks to hold digital assets.
The move would mark a significant policy shift, as current supervisory guidelines, updated in 2020, effectively prohibited banks from holding crypto for investment due to volatility risks and potential losses that could affect banks’ financial health.
If successful, the proposed framework would align crypto asset management with traditional instruments like equities and government bonds.
 
Japanese Banks May Be Allowed To Operate As Licensed Crypto Exchanges
Japan’s Financial Services Agency is also considering allowing banks to register as licensed “cryptocurrency exchange operators,” enabling them to offer their customers trading and custody services directly. The financial regulator believes the foray of trusted banking institutions could create a safer investment environment for retail investors.
Japan has long been a crypto hub; the now-defunct major Bitcoin exchange Mt. Gox was headquartered in Tokyo, resulting in a large retail market in the country. But an infamous, long-running hack of the platform led to its 2014 closure, with repayments only starting in early 2024.
The crypto market in Japan continues to grow rapidly, with over 12 million crypto accounts registered as of February 2025, which is roughly 3.5 times higher than five years ago.
The development comes as Japan’s three megabanks, including Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Banking Corp. (SMBC), and Mizuho Bank, have joined forces to issue stablecoins pegged to the Japanese yen and the U.S. dollar amid soaring global interest in tokenized fiat rails.
Source: https://zycrypto.com/japans-financial-regulator-considers-allowing-banks-to-trade-and-hold-bitcoin-other-cryptos/
