Japan Considers Allowing Banks to Hold and Trade Digital Assets

 Japan Considers Allowing Banks to Hold and Trade Digital Assets

Japan’s Financial Services Agency (FSA) is reportedly exploring reforms that would allow domestic banks to hold, trade, and manage digital assets like Bitcoin in a regulated environment. 

The proposal aims to classify certain banking groups as authorized crypto asset service providers, granting them legal clearance to handle digital currencies alongside traditional financial instruments.

If enacted, the reform could make Japan one of the first major economies to fully integrate crypto within its banking sector — potentially boosting institutional confidence, liquidity, and infrastructure development.

However, regulators are still debating risk management, custody security, and capital requirements, as integrating volatile digital assets into balance sheets poses new challenges for financial stability.