Japanese Media: Japan is Considering Allowing Local Banks to Trade Cryptocurrency

BlockBeats News, October 20th, according to local Japanese media on Sunday, the Japanese Financial Services Agency (FSA) is considering allowing domestic banks to transact with and hold cryptocurrency. The FSA is planning to discuss whether to reform the current regulatory guidelines, which currently prohibit domestic banks from holding digital assets due to their high price volatility.

The goal of this policy reform is to establish a system that would enable banks to buy and sell cryptocurrency like they do stocks and government bonds. The report stated that the FSA also plans to develop corresponding regulatory measures to mitigate the financial risks associated with this potential policy update. The FSA is expected to discuss this reform proposal at an upcoming meeting of the Financial System Council, which is an advisory body to the Japanese Prime Minister.

In addition, the FSA is also considering allowing banks to register as cryptocurrency exchanges, thereby creating a more convenient environment for retail investors to participate in the crypto market through trusted banking institutions. At the same time, the FSA is working to make the digital asset trading market more fair. According to reports, the agency plans to submit amendments that clearly prohibit trading based on non-public information, with violators facing economic penalties proportionate to their illegal gains.