Japan's FSA reviews rules to let banks hold Bitcoin
Japan's Financial Services Agency (FCA) is reviewing rules that would allow banks to buy and hold Bitcoin and other cryptocurrencies on their balance sheets. The regulator is also looking at whether banking groups could register as licensed crypto exchange operators to offer trading and custody services.
The FSA is examining updates to supervisory guidelines that currently block banks from holding digital assets directly, according to local news reports. The review is taking place now, but officials have not announced a timeline for any decision. The agency has not released public comments on the proposal.
Under the potential framework, banks could hold crypto as an investment alongside other assets. Separately, financial groups could apply for exchange licenses to run trading and custody operations within their existing structures. The review comes as domestic crypto use grows and policymakers work to align digital asset rules with standards for other investment products in the banking sector.
Japan limited banks' direct crypto holdings in 2020 through supervisory guidance. Regulators cited volatility and risk-management concerns at the time. Since then, authorities have developed proposals to regulate crypto under the Financial Instruments and Exchange Act, treating digital assets more like traditional securities. A bill incorporating these changes is expected to reach parliament by 2026 at the earliest.
The policy discussion reflects broader regulatory work this year. Officials are building a framework that would apply insider-trading restrictions and other securities rules to crypto markets. The effort aims to establish a unified regime for digital assets within Japan's financial system.
Retail participation in crypto has expanded steadily. By early 2025, millions of accounts were registered with domestic exchanges. That growth provides context for the FSA's current examination of bank involvement in the sector.
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