Japan’s FSA Moves to Allow Banks to Hold and Trade Cryptocurrencies
Japan's Financial Services Agency (FSA) is poised to overhaul cryptocurrency regulations, potentially enabling banks to trade and hold digital assets like traditional securities. The proposed reforms would mark a significant shift from the 2020 guidelines that currently restrict such activities due to volatility concerns.
The regulatory update reflects Japan's recognition of crypto's growing role in global finance and its own economic challenges. Banks may soon operate as licensed exchange platforms, with digital assets treated similarly to stocks and bonds under new risk management frameworks.
This policy evolution positions Japan's financial sector to participate directly in the digital asset market's expansion. The FSA's approach balances innovation with prudent oversight, acknowledging crypto's maturation while implementing safeguards against market instability.
