Japan mulls rule change to let banks hold Bitcoin, crypto for investment
Japan is considering allowing banks to hold Bitcoin and other cryptocurrencies for investment purposes, aiming to balance innovation with financial stability.Summary
Japan’s Financial Services Agency (FSA) is exploring regulatory changes that would permit banks to invest in and hold digital assets like Bitcoin. Currently, FSA guidelines prohibit banks from holding crypto for investment due to volatility concerns. The proposed framework seeks to reverse this restriction while implementing new risk management systems to protect financial stability. Discussions are expected to begin within the Financial System Council, focusing on how banks can manage crypto-related risk exposure. The FSA also contemplates allowing banking groups to register as crypto asset exchange service providers, potentially creating a safer investment environment for retail investors by leveraging the trust associated with established banking institutions.
(Source：Crypto Briefing)