Japanese FSA plans to let banks buy and hold crypto

Japan’s Financial Services Agency (FSA) plans to explore regulatory reforms that would permit banks to acquire and hold cryptocurrencies, such as Bitcoin, for investment ￰0￱ trading has become increasingly popular ￰1￱ has prompted several countries to consider establishing a system that allows banks to trade cryptocurrencies, just as they do with stocks and government bonds. *:pointer-events-auto scroll-mt-calc(var(--header-height)+min(200px,max(70px,20svh)))" dir="auto" data-turn-id="request-WEB:b6746e21-c3d8-4ff5-ba09-b97fa827569f-133" data-testid="conversation-turn-4" data-scroll-anchor="true" data-turn="assistant"> The FSA also plans to introduce new rules to ensure financial stability within the banking ￰2￱ final decision on bank participation in the crypto market will be discussed at an upcoming meeting of the Financial Services Council, which serves as an advisory body to the Prime Minister.

Japan’s FSA intends to create a safer crypto space with banks Digital assets, such as Bitcoin , which lack a backing, tend to experience more significant price fluctuations than stocks and other ￰3￱ has prompted several officials to raise concerns that banks may face significant losses if they hold substantial amounts of such cryptocurrencies in the event of sudden price drops, thereby endangering their financial stability. Therefore, being the main financial regulator in Japan, the FSA’s regulations, updated in 2020, primarily prevent bank groups from purchasing crypto assets for investment purposes. Still, the agency has announced plans to review regulations further based on how they impact banks’ financial status, even though owning and trading digital assets is permitted in the ￰4￱ the FSA’s announcement to consider a system reform for the involvement of banks in the cryptocurrency ecosystem, reliable sources have highlighted that a working group will probably discuss developing a system to handle crypto-related ￰5￱ sources also pointed out that the FSA will likely consider letting bank groups register as cryptocurrency exchange ￰6￱ operators are assigned to provide services for trading and exchanging ￰7￱ allowing trustworthy banking groups to join the cryptocurrency ecosystem, the FSA aims to create a safer and more conducive crypto environment for individual investors.

Meanwhile, recent reports from reliable sources have acknowledged the rapid growth of cryptocurrency trading in ￰8￱ reports followed the FSA and other sources’ highlighting that more than 12 million cryptocurrency accounts were opened in the country in February of this ￰9￱ number is around 3.5 times more than the figures recorded five years ￰10￱ FSA to end to insider trading in Japan This year, Japan has demonstrated a strong commitment to solidifying its position as a leader in the crypto ￰11￱ from the FSA considering reforms to permit banks to acquire and hold crypto assets for investment this month, the agency is also preparing to make significant amendments to the legal status of cryptocurrency to help combat insider ￰12￱ trading in crypto refers to a situation where market participants carry out trades using confidential information unknown to the general public that originates within an ￰13￱ act is considered illegal in Japan; therefore, the FSA plans to present a bill to the Parliament in 2026 to address this ￰14￱ bill will introduce a minor legal change, but its impact on everything from Bitcoin to lesser-known meme coins could be ￰15￱ FSA has also made public its plans to set up a new Crypto Bureau next year to address future crypto-related ￰16￱ recurring problem in the cryptocurrency ecosystem has always been insider trading, but it appears to be even more toxic ￰17￱ follows a recent report that highlighted an unknown investor who profited significantly from Trump’s Black Friday tariff announcement, which has sparked intense anger within the ￰18￱ some nations, such as the US, are embracing an increasing tendency that “crime is legal now,” other nations are fighting against this ￰19￱ support this claim, local news today reported that Japan is preparing to take a crucial step to reclassify cryptocurrency, aiming to prevent insider trading ￰20￱ you're reading this, you’re already ￰21￱ there with our newsletter .