Japan To Let Banks Offer Crypto Trading, Invest Directly in BTC
FSA Plans to Ease Crypto Restrictions for Banks
Japan’s Financial Services Agency is considering lifting restrictions that prevent banking groups from operating cryptocurrency trading businesses and from investing directly in digital assets, according to a report by Nikkei. The change would open a market long dominated by securities affiliates such as SBI VC Trade and Rakuten Wallet.
Under current rules, subsidiaries of banking groups cannot register as crypto asset providers under the Banking Act. The planned revision would allow securities units within those groups to register with the FSA, giving them access to Japan’s growing market.
The FSA’s move would place bank-affiliated securities firms on the identical footing as rivals owned by standalone securities groups, potentially reshaping competition in the domestic crypto sector.
Investor Takeaway
Banks Could Soon Hold Crypto as Investment Assets
The regulator is also weighing whether to let banks purchase and hold cryptocurrencies for investment. The agency plans to revise its supervision guidelines so that digital assets are treated as investment holdings alongside government bonds and listed securities.
Officials will design a framework to ensure that such investments do not threaten a bank’s balance sheet or client assets. Banks will be required to disclose risk exposures and maintain adequate capital buffers against potential losses from price swings.
“Cryptocurrencies are volatile and can cause sharp investor losses,” an FSA source told local media, adding that the watchdog would require firms to clahead outline risks to retail clients before offering crypto services.
Working Group to Discuss Amendments
Formal discussions will begin Wednesday at the Financial System Council, an advisory body to Japan’s prime minister. The working group will study how to integrate crypto supervision into the existing regulatory framework and align it with global standards.
The initiative comes amid a surge in local participation. Data from the Japan Virtual and Crypto Assets platform Association show that the number of active trading accounts reached 7.88 million in August, quadrupling over the past five years. The growth has prompted regulators to revisit rules that were originally designed for a much smaller market.
Investor Takeaway
Global Context
Other financial centers have moved in the identical direction. Standard Chartered launched a digital asset trading service for institutional clients in July, while banks in Europe and the U.S. are exploring tokenized products and custody services. Japan’s decision to revisit its own limits signals a bid to keep pace with these developments while maintaining its cautious regulatory stance.
The FSA’s policy review could mark the first step toward allowing Japan’s megabanks—such as MUFG, Mizuho, and Sumitomo Mitsui—to enter the crypto market directly. If approved, the revisions would expand the scope of regulated participants and further into Japan’s financial system.
