Japan Eyes Letting Banks Hold and Trade Bitcoin as Crypto Adoption Grows

Japan's Financial Services Agency (FSA) is reportedly considering significant reforms that would permit domestic banks to acquire and hold digital assets like Bitcoin for investment, reversing a 2020 restriction based on volatility concerns. Under the proposed framework, banks could trade digital assets similarly to stocks, provided specific risk management protocols are established to safeguard financial soundness against price swings. These reforms are expected to be discussed by the Financial System Council, and officials are examining mechanisms for banking groups to register as licensed crypto exchange operators. This move aims to create a safer crypto investment environment amid Japan's high national debt, leveraging digital assets as alternative return avenues. The proposal follows rapid crypto adoption in Japan, evidenced by over 12 million registered accounts and major banks already collaborating on stablecoin issuance.

(Source：Bitcoin Magazine)