Financial Services Agency Considers Lifting Ban on Cryptocurrency Investments by Banks

According to a report by Yomiuri Shimbun on the 19th, the Financial Services Agency (FSA) is beginning to consider regulatory reforms that would 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 in the same way as stocks and government bonds, with discussions to be held at the upcoming working group of the Financial Council. Currently, the FSA's 2020 revised supervisory guidelines effectively prohibit bank groups from acquiring cryptocurrencies for investment purposes. Cryptocurrencies, unlike stocks, are subject to significant price fluctuations, and there have been concerns that large holdings could worsen a bank's financial situation during a price crash. The FSA plans to maintain strict financial health oversight even after lifting the ban...