Hey everyone!
I came across some really interesting news from Japan that could be a big deal for the crypto world. According to recent reports, Japan’s Financial Services Agency (FSA) is considering new reforms that might allow banks to directly hold cryptocurrencies like Bitcoin — and even run licensed crypto exchanges.
The FSA plans to review how banks could manage the risks that come with crypto — things like sudden price drops that could affect their stability. Before giving any green light, they’re expected to put in place strict capital and risk management rules for banks that want to hold digital assets.
Japan may let banks operate licensed crypto exchanges
The FSA is also considering allowing bank groups to register as licensed “cryptocurrency exchange operators,” enabling them to offer trading and custody services directly.
Japan’s crypto market continues to grow rapidly, with more than 12 million crypto accounts registered as of February 2025, about 3.5 times higher than five years ago, according to FSA data.
But that’s not all — the FSA might also let banking groups officially register as cryptocurrency exchange operators. This means banks could soon offer crypto trading and custody services directly to their customers — something we haven’t seen on this scale before in Japan.
The FSA believes that many of the issues seen in crypto are similar to those in traditional finance — so using the same rules could help improve transparency and enforcement.
The regulator said that many issues within crypto resemble those traditionally addressed under the FIEA, so it may be appropriate to apply similar mechanisms and enforcement.
Japan’s top banks to launch yen-pegged stablecoin
Three of Japan’s largest banks, including Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Banking Corp. (SMBC) and Mizuho Bank, have joined forces to issue a yen-pegged stablecoin aimed at streamlining corporate settlements and reducing transaction costs.
Meanwhile, Japan’s Securities and Exchange Surveillance Commission plans to introduce new rules to ban and penalize crypto insider trading.
It’ll be interesting to see how other countries respond if Japan goes ahead with this — it could start a new wave of regulatory acceptance for crypto globally. 🌍