Japanese banks may be granted the right to purchase and store cryptocurrencies

Key points:

• Japan’s Financial Services Agency (FSA) is preparing to revise legislation to allow banks to purchase and store cryptocurrencies.
• The reform aims to equate crypto assets with traditional financial instruments and establish risk management rules.
• Additionally, the FSA is considering allowing banking groups to operate licensed cryptocurrency exchanges, thereby strengthening Japan’s role in the global cryptocurrency market.

The Financial Services Agency (FSA) is preparing to revise rules that will allow banks to acquire and hold cryptocurrencies for investment purposes.

According to Livedoor News, the FSA plans to discuss the reform at an upcoming meeting of the Financial Services Council, an advisory body to the prime minister. This initiative aims to align the management of crypto assets with traditional financial products such as stocks and government bonds.

Regulators are expected to examine the risk management system related to cryptocurrencies that could affect the bank’s financial position. If approved, the FSA is likely to introduce capital and risk management requirements before allowing banks to hold digital assets.

Japan may allow banks to operate licensed cryptocurrency exchanges

The FSA is also considering allowing banking groups to register as licensed crypto exchange operators, which would allow them to offer trading and custody services directly.

The Japanese cryptocurrency market continues to grow rapidly: as of February 2025, there were more than 12 million cryptocurrency accounts registered, which is about 3,5 times more than five years ago, according to FSA data.

In early September, the FSA sought to include cryptocurrency regulation in the Financial Instruments and Exchange Act (FIEA) in order to strengthen investor protection and bring cryptocurrencies into compliance with securities laws.

The regulator stated that many issues related to cryptocurrencies are similar to those traditionally addressed under the FIEA, so applying similar mechanisms and enforcement measures may be appropriate.