Japan Considers Allowing Banks to Trade Digital Assets Such as BTC: Report

Japan's Financial Services Agency (FSA) is reportedly considering a significant reform that would permit banks to acquire and hold digital assets, such as Bitcoin, for investment purposes. This new system would allow banks to trade cryptocurrencies similarly to how they handle stocks and government bonds, provided certain regulations are in place to maintain financial stability. Furthermore, the FSA is looking into registering banking groups as "cryptocurrency exchange operators" to facilitate trading and exchange services. This potential shift, which will be discussed by the Financial Services Council's working group, moves away from a 2020 guideline that prohibited local banks from holding cryptocurrencies for investment. This move aligns with global digital asset adoption and comes as Japan manages a high debt-to-GDP ratio, potentially making cryptocurrencies an attractive alternative for investors.

(Source：CoinDesk)