TechFlow, October 20 — According to The Block, Japan's Financial Services Agency (FSA) plans to discuss reforms to its current regulatory policies that may allow domestic banks to buy, sell, and hold cryptocurrencies. The FSA will raise this topic at an upcoming meeting of the Financial Services Council, an advisory body to the Prime Minister of Japan.
The reform aims to establish a system enabling banks to trade cryptocurrencies similarly to stocks and government bonds, while implementing regulatory safeguards to mitigate financial risks. Additionally, the FSA is considering allowing banks to register as cryptocurrency exchanges, creating a more accessible environment for retail investors to participate in the crypto market through trusted banking institutions.
The FSA is also working to ensure fairness in the digital asset trading market and plans to submit an amendment explicitly prohibiting trading based on non-public information, with violators facing financial penalties proportional to their illicit gains.
