Japan mulls allowing local banks to buy and sell crypto: reports

Japan's Financial Services Agency (FSA) is reportedly planning to reform supervisory guidelines that currently prohibit domestic banks from holding digital assets due to volatility concerns. The proposed policy change aims to establish a system where banks can buy and sell crypto assets similarly to stocks and government bonds. The FSA intends to create regulatory guardrails to manage financial risks associated with this update and will discuss the reform with the Financial Services Council. Additionally, the agency is considering allowing banks to register as crypto exchanges to facilitate easier retail investor access to the market through trusted institutions. This consideration comes as the FSA also works to ensure fair digital asset trading by planning amendments to explicitly ban insider trading with proportional financial penalties for violators.

(Source：The Block)