Japan’s FSA May Permit Banks to Buy, Hold Crypto and Operate Exchange Services

The Japanese financial regulator is considering to allow banks to purchase and hold digital currencies such as Bitcoin for investment.

Per a report by Yomiuri, the Financial Services Agency (FSA) will present the proposal at a working group meeting of the Financial Services Council.

Further, the reform aims to align crypto management with traditional financial products, including stocks and government bonds. Additional regulations to ensure stability is under consideration, the report read.

The move follows FSA’s plans to finalize crypto trading rules by 2025 and combat crypto insider trading. The regulator has implemented surcharge orders mandating violators to pay penalties for illicit gains.

金融庁、銀行が投資目的で暗号資産の取得・保有を可能にする制度改正を検討へhttps://t.co/eadbp1HVxl#経済

— 読売新聞オンライン (@Yomiuri_Online) October 18, 2025

FSA to Consider Bank Groups as Crypto Exchanges

The watchdog further noted that it would allow bank groups to register as “cryptocurrency exchange operators,” allowing them to offer trading and exchange services.

“By allowing highly credible bank groups to participate, the FSA will create an environment that makes it easier for individual investors to invest,” the report translated.

As of February 2025, the country saw over 12 million crypto accounts registered, a 3.5x times increase compared to five years ago.

Besides, Japan saw the strongest growth, 120% year-over-year growth in on-chain value received during the 12 months ending June 2025, per a Chainalysis report. The nation also led the top five Asia Pacific markets in crypto adoption, reflecting positive regulatory efforts.

Japan’s Growing Openness to Crypto

Japan has been struggling with escalating national debt, now nearing a staggering 240% of its GDP. The exceptionally high debt could prompt high inflation and other financial repression measures.

As a result, the nation has been embracing crypto in many ways, including launching first yen-backed stablecoin. The FSA said that it would approve issuance of the stablecoin this month. The token aims at uses ranging from international remittances to corporate settlements.

Besides, Japanese firms are betting big on Bitcoin treasuries and stockpiling, led by Metaplanet. Recently, five Japanese firms announced fresh treasury allocations, adding a combined 156.79 BTC to their balance sheets. Metaplanet, Japan’s most aggressive Bitcoin treasury firm, has so far snapped 30,823 BTC, becoming the fourth-largest corporate Bitcoin holder.