Japan FSA Eyes Opening Crypto Access for Banks｜Boosting Institutional Adoption

Japan Financial Services Agency (Japan FSA) is reportedly reviewing regulatory reforms that would enable commercial banks to acquire and hold cryptocurrencies such as Bitcoin for investment purposes. At the same time, the regulator is set to explore how to establish internal risk-management frameworks to oversee such potential activities.

• According to multiple media sources, the Japan FSA is engaging with banking groups, securities firms and industry experts to examine key questions: whether banks can safely hold crypto assets, how to structure compliance and risk-control systems, and how banks should disclose and manage the unique risks posed by digital assets. The Japan Times

• Under current Japanese banking law, subsidiaries of banking groups are not permitted to register as crypto-asset service providers. The contemplated reform would allow these securities arms to enter the crypto market, putting them on a more equal footing with securities-company-affiliated crypto providers. Fintech Hong Kong

• The FSA is reportedly cautious: because cryptocurrencies are highly volatile and carry potential for sizeable losses, any allowance for banks will likely be coupled with heightened capital requirements, mandatory risk disclosures, strict internal control protocols, and clear boundaries on which services can be offered to retail investors. Cointelegraph

• This move signals a shift in Japan’s regulatory posture toward digital assets — moving away from a stance that effectively barred banks from holding crypto, toward one where regulated access may be permitted if risk frameworks are robust. Bitcoin Magazine

• From a market standpoint, the entry of traditional banks into the crypto domain could enhance institutionalization of the asset class in Japan, increase market depth, and prompt structural changes. At the same time, banks must navigate how to integrate crypto into their business, ensure compliance, safeguard clients and avoid emerging operational risks.

  
  

Source：japannews.yomiuri.co

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Disclaimer

This news summary is for informational purposes only and does not constitute investment advice, solicitation, or financial guidance. Readers should perform their own due diligence and consult with professional advisors before making any investment decisions.