- Japan FSA to permit banks holding Bitcoin, running crypto exchanges.
- Regulatory shift aims for investor protection, market alignment.
- Institutional Bitcoin adoption could significantly increase in Japan.
Japan’s Financial Services Agency plans to allow banks to hold Bitcoin and run crypto exchanges, announced on September 2, 2025, indicating a regulatory shift.
This development could significantly impact cryptocurrency custody and trading, enhancing institutional involvement and aligning digital assets with established financial regulations.
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Japan’s Financial Services Agency (FSA) announced plans on September 2, 2025, to allow banks to hold Bitcoin and operate crypto exchanges. This represents a fundamental shift in Japan’s digital asset regulatory framework.
The FSA will move digital asset oversight into the Financial Instruments and Exchange Act (FIEA). This aligns digital assets with established financial market regulations, enhancing accountability and investor protection.
The potential impact is significant as Japanese banks may directly engage in Bitcoin custody. This could drive institutional demand and foster new institutional frameworks for crypto asset management in the banking sector.
The proposal represents a landmark shift in crypto asset regulation.
The regulatory overhaul could see social and economic shifts. Banks holding Bitcoin would inject enhanced liquidity and market stability, possibly influencing Japan’s broader financial regulation trends.
The absence of direct leadership commentary suggests cautious advancement by Japanese authorities. Regulatory clarity remains a priority, encouraging structured public feedback before final enactment.
Historic trends suggest Japan sets a precedent for global crypto regulation. The 2017 Payment Services Act laid the foundation, whereas the current regulatory proposal could further institutionalize cryptocurrency, potentially affecting major assets such as Ethereum.
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