Japan Paves Way for Banks to Trade Cryptocurrencies
Japan is exploring a new framework that could allow banks to buy and sell cryptocurrencies like Bitcoin. The Financial Services Agency (FSA) is considering this move to expand access for retail investors.
The FSA is set to discuss this at an upcoming Financial Services Council meeting. This change would let banks treat crypto assets similarly to stocks and bonds. However,strict risk management rules will apply to ensure financial stability.
Currently,ensuring financial stability.
Japan’s early adoption of crypto regulation, starting in 2010, sets a strong foundation for these discussions. The country was the first major economy to recognize Bitcoin as a legal payment method in 2017.
Simultaneously occurring, Japan’s top banks are working on a yen-pegged stablecoin to modernize corporate settlements. This initiative,built on MUFG’s Progmat platform,aims to reduce transaction costs. If triumphant, it could launch Japan’s first bank-backed stablecoin network.
The Bank of Japan is also testing a central bank digital currency (CBDC) as part of its digital payments modernization efforts. These developments highlight Japan’s commitment to advancing the crypto space while maintaining a robust regulatory framework.
