Daniel Walker
Japan’s Financial Services Agency (FSA) is reportedly preparing to revise existing regulations to allow domestic banks to trade and hold cryptocurrencies, according to local media reports published Sunday.
The move marks a potential landmark shift in Japan’s financial policy, as current supervisory guidelines strictly prohibit banks from owning or dealing in digital assets due to concerns about price volatility and systemic risk.
As reported by Yomiuri Shimbun, the FSA plans to discuss reforms that would create a framework enabling banks to buy and sell cryptocurrencies much like they currently do with stocks or government bonds.
The agency is expected to outline regulatory safeguards to minimize financial risks and maintain stability within Japan’s banking system. These discussions are scheduled to take place at an upcoming Financial Services Council meeting, which serves as an advisory body to the Prime Minister.
Easing Access for Retail Investors
The FSA is also exploring ways to allow banks to register as licensed crypto exchanges, a move that could make it easier for retail investors to buy and trade digital assets through trusted banking channels.
Such a change could strengthen investor confidence and expand mainstream participation in Japan’s growing digital asset ecosystem.
Strengthening Oversight and Market Fairness
In parallel with these proposed reforms, the FSA reportedly plans to introduce amendments aimed at preventing insider trading in the crypto sector. The updates would explicitly ban trades made using non-public information, with violators facing financial penalties proportional to their illegal profits.
If implemented, these reforms could position Japan as one of the most progressive crypto-friendly nations, balancing innovation with investor protection and potentially setting a model for other major economies to follow.
