Japan Could Allow Banks to Trade Digital Assets Such as Bitcoin: Report

TL;DR

• Japan’s FSA is considering allowing banks to hold and trade digital assets, such as bitcoin.

• The proposed reform would enable banks to trade cryptocurrencies like trading stocks and bonds. 

Japan Mulls Allowing Banks to Trade Digital Assets 

Japan's Financial Services Agency (FSA) is considering a reform that would allow banks to buy and hold digital assets such as Bitcoin for investment purposes. This is according to a report by Japanese newspaper Yomiuri.

The report highlighted that the reform will allow banks to trade cryptocurrencies the same way they trade stocks and government bonds. However, the FSA will implement certain regulations to ensure financial stability. 

The regulator is also considering the possibility of registering banking groups as "cryptocurrency exchange operators." This would allow the banks to offer trading and exchange services in a bid to ease the process of investing by involving credible banking groups.

The report added that the impending working group meeting of the Financial Services Council, an advisory body to the Prime Minister, will meet to discuss the new reform. Japan is taking bold steps in regulating the crypto space, with other leading economies such as the United States also moving in the same direction.