Japan’s Financial Services Agency Moves to Allow Bank Participation in Crypto Trading
Japan's Financial Services Agency is poised to revise regulations that currently bar traditional banks from engaging in cryptocurrency trading. The proposed changes would permit bank-affiliated securities firms to register as crypto asset service providers, marking a significant shift in the nation's digital asset policy.
The regulatory overhaul aims to level the playing field between traditional financial institutions and fintech companies. Banking subsidiaries could soon compete directly with established crypto firms like SBI Holdings and Rakuten Securities, potentially reshaping Japan's digital asset landscape.
This policy evolution follows Japan's 2017 legalization of crypto exchanges and reflects growing institutional acceptance of digital assets. The FSA's proposal WOULD treat cryptocurrencies similarly to traditional securities, aligning regulatory frameworks across asset classes.
