Japan’s Financial Services Agency (FSA) plans to allow local banks to trade and store cryptocurrencies.
Japan Considers Giving Local Banks Crypto Trading Authority
The agency is considering amending existing oversight guidelines to remove restrictions preventing banks from investing in digital assets.
Under current regulations, Japanese banks are prohibited from holding or trading digital assets due to the volatility of cryptocurrencies. However, the new reform plan aims to establish a system that would allow banks to buy and sell crypto assets like stocks or government bonds.
In parallel with this potential regulation, the FSA also plans to establish new supervisory frameworks to mitigate financial risks. The proposed reform will be discussed at an upcoming meeting of the Financial Services Council, an advisory body to the Prime Minister.
The agency is also considering allowing banks to register as crypto exchanges, aiming to provide retail investors with easier access to the crypto market through trusted banks.
Meanwhile, the FSA is working to make the digital asset market in Japan more transparent. The agency is reportedly preparing to introduce new regulatory changes that explicitly prohibit trading based on confidential information and has stated that individuals caught committing such violations will be subject to fines commensurate with their illicit profits.
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/japan-makes-critical-cryptocurrency-move-are-banks-being-allowed-to-buy-and-sell-cryptocurrency-here-are-the-details/
