Financial Services Agency Considers Allowing Banks to Invest in Cryptocurrencies

According to a report by Yomiuri Shimbun on the 19th, the Financial Services Agency (FSA) has begun considering regulatory reforms to allow banks to acquire and hold cryptocurrencies such as Bitcoin (BTC) for investment purposes. The aim is to establish a system where cryptocurrencies can be traded similarly to stocks and government bonds. This topic is slated for discussion in an upcoming working group meeting of the Financial Advisory Council. Currently, under the revised FSA supervision guidelines of 2020, it is effectively prohibited for bank groups to acquire cryptocurrencies for investment purposes. Cryptocurrencies are considered highly volatile compared to stocks, and there are concerns that substantial holdings could worsen a bank's financial condition during a market crash. The FSA plans to maintain strict financial health oversight even after lifting the ban...