Japan Weighs Allowing Banking Groups to Offer Crypto Trading Services
Japan’s Financial Services Agency (FSA) is considering a major regulatory shift that would allow banking group subsidiaries to launch cryptocurrency trading services, according to a report by Nikkei on Wednesday. The move aims to expand market access and boost competition in Japan’s fast-growing digital asset industry.
Currently, subsidiaries of banking groups are barred under the Banking Act from registering as crypto asset service providers. The proposed revision would enable securities subsidiaries of banking groups to handle crypto trading, putting them on an even playing field with existing operators tied to securities companies, such as Rakuten Wallet and SBI Holdings’ crypto unit.
The FSA is also reportedly reviewing the long-standing ban on banks investing directly in cryptocurrencies, potentially allowing financial institutions to buy and hold crypto assets as part of their portfolios.
Officials have emphasized that any regulatory changes will be accompanied by strict consumer protection rules, requiring bank-affiliated firms to clearly explain the volatility and risks of crypto investments to retail investors.
The proposed reforms come as Japan seeks to strengthen its position as a regulated global crypto hub, balancing innovation with investor safety. The FSA has not yet issued an official comment, but the policy shift could reshape Japan’s financial sector by integrating traditional banking and digital asset markets more closely than ever before.
