FSA plans to allow banks to own Bitcoin and crypto assets, creating a system for risk management and capital requirements.
Japan considers allowing banks to invest in cryptocurrencies
Japan’s Financial Services Agency (FSA) is preparing to revise regulatory rules that could allow banks to buy and hold cryptocurrencies, including Bitcoin, as investment assets, Livedoor News reported.
If approved, the reform would mark a dramatic shift in the country’s policy. Current guidelines, updated in 2020, prohibit banks from holding cryptocurrencies due to high volatility risks.
FSA prepares updated rules
According to sources, the initiative will be discussed at a meeting of the Finance Council under the Japanese Prime Minister. The goal is to align the rules for digital assets with traditional financial instruments such as stocks or government bonds.
The regulator plans to develop a risk management framework for banks that may potentially hold crypto assets. The reform is expected to include strict capital and risk management requirements to avoid financial turmoil due to price fluctuations.
“We want to create a system where banks can interact with crypto assets as safely as with traditional securities,” an FSA representative said.
Banks will be able to open their own crypto exchanges
In parallel, the FSA is considering allowing banking groups to register as licensed crypto exchanges. This would allow financial institutions to offer customers trading and custody of digital assets directly, without intermediaries.
The decision reflects the growing role of cryptocurrencies in Japan’s financial ecosystem. According to the FSA, the number of crypto accounts in the country exceeded 12 million in 2025 — 3.5 times more than five years ago.
Crypto markets under FIEA control
In early September, the FSA initiated the transition of crypto regulation from the Payment Services Act (PSA) to the Financial Instruments and Exchange Act (FIEA). This move should strengthen investor protection and equate cryptocurrencies with ordinary securities.
The regulator stated that “many of the problems of the crypto market are similar to those already addressed under the FIEA”, so similar control mechanisms would be more appropriate.
Japanese banks prepare yen stablecoin
In parallel, the country’s three leading banks — MUFG, SMBC and Mizuho Bank — have joined forces to issue a stablecoin pegged to the yen, which should reduce transaction costs and simplify corporate payments.
Meanwhile, Japan’s Securities and Exchange Commission is preparing new rules that will prohibit crypto insider trading and introduce penalties for market manipulation.
If the FSA approves the changes, Japan could become the first developed economy to officially allow banks to hold Bitcoin — a move that could significantly elevate the status of crypto assets in the global financial system.
Related: Japan’s three largest banks to launch yen stablecoin
