Historic Pivot: Japanese Financial Authority Wants to Open Crypto Trading to Banks!

Japan considers allowing banks to invest in cryptocurrencies

Plan to open doors for banks to enter the crypto market
Japan's Financial Services Agency (FSA) is considering regulatory reforms to allow banks to buy and hold cryptocurrencies like Bitcoin for investment purposes.

Currently, regulations from 2020 still prohibit banks from investing in digital assets due to concerns about price volatility risks.

However, the FSA said it will reassess the rules based on their actual impact on financial stability, and consider allowing banks to register as crypto exchanges .

The agency hopes that opening up to trusted financial institutions will create a safer trading environment for individual investors .

Trading boom and reform momentum
Japan is seeing a surge in cryptocurrency trading, with more than 12 million accounts opened in February this year — 3.5 times more than five years ago .

Faced with this trend, the FSA believes that it is necessary to soon establish a new legal framework to help banks participate in the market safely , similar to trading stocks or bonds.

A dedicated team will also be set up to assess the risks associated with crypto.

“We want to create a safer crypto space where investors and banks can grow together,” an FSA official emphasized.

Determined to fight insider trading in crypto
In parallel with banking reforms, the FSA is preparing a bill to be submitted to the National Assembly in 2026 to thoroughly tackle insider trading in cryptocurrencies – the exploitation of confidential internal information for personal gain.

To help, the agency will establish its own Crypto Bureau next year. The FSA hopes these changes will help Japan solidify its position as a pioneer in digital asset management , while also countering the trend of “legalizing financial crime” that is spreading in some other countries.