Japan’s Financial Services Agency (FSA) is weighing a proposal to allow banking group subsidiaries to offer cryptocurrency trading services, the Nikkei reported Wednesday, in a move that could reshape the country’s financial landscape and increase competition in digital asset markets.
Under current law, bank-affiliated firms cannot register as crypto asset service providers. The planned revision would change that, giving banking group securities subsidiaries the same rights as securities-company groups such as SBI Holdings and Rakuten Securities, which already operate crypto platforms through affiliates.
The FSA is also reviewing whether to lift the existing ban on banks holding cryptocurrencies for investment purposes. Such a change would mark a significant step toward broader institutional participation in Japan’s crypto economy.
However, regulators are expected to impose strict risk disclosure requirements on bank-affiliated firms, ensuring they explain crypto’s high volatility and potential for heavy losses to retail investors. The FSA has not commented publicly on the proposal, which remains under consideration.
If enacted, the reform would further Japan’s efforts to position itself as a global leader in regulated digital finance, bridging the gap between traditional banking and emerging crypto markets.
