Overview

• Japan’s Financial Services Agency is considering a reform to allow banks to acquire and hold cryptocurrencies, with a proposal expected to be discussed by a Financial Services Council working group, according to reports from Yomiuri and Livedoor.
• The contemplated framework would let banks trade digital assets in a manner similar to stocks and government bonds, rolling back supervisory guidance that has effectively kept banks out of crypto since 2020.
• Regulators are also weighing whether banking groups could register as licensed cryptocurrency exchange operators, enabling them to offer trading and custody directly.
• The draft approach is expected to require strict risk controls, including capital safeguards, exposure limits and stress-testing to manage price volatility and protect financial stability.
• The policy shift aligns with broader moves to bring crypto under securities-style oversight via the FIEA, growing enforcement on trading conduct and bank-led yen stablecoin pilots, as usage tops 12 million registered accounts.