Japan surprises the world: its banks could invest in Bitcoin and Ethereum very soon

Japan is considering a financial reform that would allow its banks to acquire and hold Bitcoin and Ethereum. If approved, it would mark another strategic shift in its regulatory policy toward digital assets.

Japan's Financial Services Agency (FSA) is considering a significant reform that would allow banks to acquire and hold cryptocurrencies such as Bitcoin and Ethereum for investment purposes. This development represents a major shift in Japanese regulation, which has thus far maintained strict restrictions on financial institutions' participation in the digital asset market.

This proposal comes at a time when institutional interest in cryptocurrencies is growing globally, and Japan continues to position itself as a key player in the adoption and development of innovative financial technologies. The measure aims to allow banks to manage cryptocurrencies with the same flexibility and security they currently use to manage traditional funds such as stocks and bonds.

According to recent local media reports, the FSA may soon submit these reforms to the Financial Services Council. If approved, they will allow Japanese banks to operate with cryptocurrencies within a clear and supervised regulatory framework, promoting the integration of these assets into the country's formal financial system.

The FSA is modernizing rules to pave the way for crypto banks.

The Yomiuri Shimbun, one of the most influential newspapers in Japan, reported It was recently reported that the FSA is considering a complete review of the regulatory guidelines that currently prevent national banks from holding digital assets in their portfolios. The proposal is part of an effort to Modernize the regulatory framework to adapt to the growing relevance of digital assets as globally accepted investment instruments.

According to the report, in 2020 Japan established that banking institutions could not hold digital currencies. However, new proposals seek to change this view, recognizing that cryptocurrencies like Bitcoin and Ethereum have become established international benchmarks in the financial ecosystem. The intention is to classify these currencies under the Financial Products Transactions Act, which would offer a clearer and more structured legal framework for their inclusion in institutional portfolios.

One of the main proposed changes is a reduction in the tax burden on profits derived from these investments. If implemented, this change would facilitate greater participation by banks in the digital asset market and help position Japan as a more innovative financial center, open to digital trends.

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Japan drives the digital financial revolution

The possibility of Japanese banks trading directly in Bitcoin and Ethereum represents a significant shift, both for Japan and the global financial landscape. In Japan, this initiative would open new opportunities for financial institutions to diversify their investment strategies, responding to growing customer interest in digital assets within a regulated and secure framework. Furthermore, it would boost public confidence in these cryptocurrencies, solidifying them as legitimate options within the traditional financial ecosystem.

Internationally, Japan's decision could serve as a model for other nations still facing challenges in integrating cryptocurrencies into their financial systems. The active participation of Japanese banks would bring greater dynamism and transparency to the global market, demonstrating that digital assets can coexist and complement traditional finance.

This move comes at a time when other regions are rapidly adopting cryptocurrencies. While the United States debates market structure regulations and Europe consolidates specific rules, Japan is positioning itself as a key player in this financial transformation, seeking to remain at the forefront of innovation and regulation.

Finally, allowing banks to trade cryptocurrencies could also attract foreign investment and strengthen local fiscal policy. The potential reduction in taxes on profits generated by these digital assets would incentivize greater institutional participation, consolidating Japan's competitiveness and its leadership in the cryptocurrency-related financial sector.