Financial Services Agency to Formally Consider Allowing Banks to Invest in Cryptocurrencies

The Financial Services Agency has officially announced the commencement of discussions on regulatory amendments that would allow banks and insurance companies to hold cryptocurrencies such as Bitcoin (BTC) for investment purposes.

The backdrop to this development is the ongoing discussions to include cryptocurrencies under the Financial Instruments and Exchange Act. As the market matures, there is a consideration to allow banks and insurance companies to hold cryptocurrencies as a means of diversification in their investment portfolios.

This was initially reported by the Yomiuri Shimbun on the 19th, but the materials for use in the Financial Council's (an advisory body to the Prime Minister) working group meeting on the 22nd have been made public, revealing 'Document 2 from the Secretariat'...