Japan’s FSA weighs allowing banks to hold Bitcoin, other cryptos: Report

Japan's Financial Services Agency (FSA) is reportedly reviewing regulations that could permit banks to acquire and hold cryptocurrencies like Bitcoin for investment, marking a significant policy change from current guidelines that effectively ban crypto holdings due to volatility risks. The FSA plans to discuss this reform with the Financial Services Council, aiming to align crypto asset management with traditional financial products. If approved, regulators will likely impose strict capital and risk-management requirements before allowing banks to hold digital assets. Furthermore, the FSA is considering allowing bank groups to register as licensed cryptocurrency exchange operators to offer trading and custody services directly. This development occurs as Japan's crypto market expands rapidly, and the FSA continues efforts to strengthen regulation by shifting oversight under the Financial Instruments and Exchange Act (FIEA).

(Source：Cointelegraph)