Japanese Financial Regulator To Consider Permitting Country’s Banks To Invest in Crypto: Report
Japan’s financial regulators are considering changes to regulations that will allow traditional banks to offer cryptos to clients.
Japan’s Financial Services Agency, the government’s financial regulator, is considering allowing banks to trade and sell cryptocurrencies like Bitcoin ( BTC ) in the same manner as stocks and bonds, reports The Japan News.
The agency is making the moves as crypto trading becomes more widespread and common in Japan and the rest of the world.
The Financial System Council, which advises the Japanese prime minister, will hold discussions on banks trading crypto soon, according to the report. The regulator still plans to put certain guardrails up to make sure banks do not overinvest in cryptos.
Crypto markets are famously volatile, leading the Financial Services Agency to expressly forbid banks from dealing in cryptos in 2020. With these fears in mind, the Financial System Council’s discussions will focus on an effective framework for digital asset risk management.
Right now, firms seeking to offer crypto exchange services must register as a crypto-asset service provider. The Financial Services Agency is considering allowing banks to register as such in order to offer exchange services.
Crypto trading has grown in Japan in the 2020s. The amount of Japanese crypto accounts is 3.5x what it was in 2020.
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