Overview

• The Financial Services Agency is preparing proposals to let banks acquire and hold digital assets like Bitcoin for investment, according to reports based on Livedoor.
• A Financial System Council working group is expected to review the plan soon, focusing on how bank balance sheets would handle crypto volatility.
• Draft safeguards under discussion include stress testing, exposure limits, and capital rules designed to protect financial soundness.
• Regulators are also considering a pathway for banking groups to register as licensed crypto-asset exchange providers to offer trading and custody.
• Japan’s crypto market has grown rapidly in recent years, but no final decisions or implementation timeline have been announced.