Japan’s Financial Services Agency (FSA) is reportedly considering a major policy reform that would allow domestic banks to trade and hold cryptocurrencies, a practice currently banned due to concerns over price volatility.
According to the Yomiuri Shimbun, the FSA plans to discuss reforming existing supervisory guidelines to establish a system where banks can buy and sell digital assets much like they handle stocks and government bonds. Crucially, the agency intends to implement new regulatory guardrails to mitigate the financial risks associated with this policy update. This reform is slated for discussion at an upcoming meeting of the Financial Services Council.
The FSA is also exploring the possibility of allowing banks to register as crypto exchanges. This move is intended to create a more user-friendly and trusted environment, making it easier for retail investors to access the crypto market through established banking institutions.
In related regulatory action, the FSA is reportedly planning amendments to explicitly prohibit insider trading (trading based on non-public information), with violators facing financial penalties proportional to their illicit gains, ensuring the digital asset market remains fair.
October 2025, Cryptoniteuae
