Japan Considers Lifting Crypto Ban for Traditional Banks
Japan's Financial Services Agency is nearing a decision that could allow banking groups to offer crypto trading services, potentially reshaping the nation's tightly regulated digital asset market. The move would mark a significant policy shift since the legalization of crypto exchanges in 2017, bringing mainstream financial institutions into a sector long dominated by fintech firms.
The regulatory rethink comes amid turbulent market conditions. Global crypto market capitalization dipped 2% to $3.7 trillion, while trading volume surged 31% to $224 billion—indicating rapid capital movement during the volatility.
Current banking regulations prohibit subsidiaries from registering as crypto service providers. The proposed revision WOULD level the playing field by permitting securities arms of banking groups to handle digital asset transactions.
