Japan is moving toward allowing banks to purchase and hold cryptocurrencies such as Bitcoin under new rules being developed by the Financial Services Agency. The proposed framework would let banks treat crypto assets like stocks or government bonds and set up strong risk‑management systems to handle crypto volatility. The FSA’s current guidelines (revised in 2020) restrict banks from acquiring large crypto holdings due to concerns around rapid price drops and bank solvency.
In addition, the draft rules could enable major bank groups to register and operate as cryptocurrency exchanges. This could open the crypto market to more retail investors through traditional banking channels. Japan’s crypto ecosystem is mature: accounts exceed 12 million as of February 2025, about 3.5 times the number five years ago.
Meanwhile, three of Japan’s largest banks — including Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Banking Corporation (SMBC) and Mizuho Bank — are jointly developing a yen‑pegged stablecoin for corporate payments. That effort, expected by year‑end, and the possible rule change show Japan’s push to modernize its digital‑asset and payments infrastructure.
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