Japan is considering regulatory changes to allow local banks to engage in buying, holding, and selling cryptocurrencies like Bitcoin, signaling a potential shift in crypto policy.

This move could transform Japan’s financial landscape, enhancing institutional crypto exposure and possibly increasing demand for Bitcoin and Ethereum in domestic and international markets.

Japan FSA Proposes Cryptocurrency Roles for Banks

The Financial Services Agency (FSA) proposes regulations to permit Japanese banks to buy, hold, and sell cryptocurrencies. This shift aims to enhance risk management and financial stability.

Key players include the Japanese Financial System Council, along with major banking groups such as SMFG and SBI Holdings. They are exploring custody solutions under the new framework.

Potential Surge in Bitcoin Investment by Japanese Banks

The proposal, if implemented, will open Japan’s banks to cryptocurrency exposure, primarily Bitcoin, potentially boosting institutional investment and liquidity within the market.

Financial outcomes could include increased investment in cryptocurrencies like BTC and ETH. Market participants expect a rise in liquidity, mirroring previous regulatory shifts seen globally.

Aligning Crypto with Equities: A Historical Shift

Previously, Japanese banks were prohibited from holding cryptocurrencies due to volatility concerns. The proposed changes would align cryptocurrency treatment with equities and bonds.

Experts from Kanalcoin suggest potential increases in cryptocurrency demand and stability as more banks engage with crypto assets. Historical trends indicate positive market reactions to similar developments.

“The FSA is exploring regulatory frameworks that ensure bank soundness while allowing for responsible engagement with cryptocurrencies.” – Kobe Miyoshi, Commissioner, Financial Services Agency (FSA)

Disclaimer: This website provides information only and is not financial advice. Cryptocurrency investments are risky. We do not guarantee accuracy and are not liable for losses. Conduct your own research before investing.

---

Filed under: News - @ October 20, 2025 4:26 am