Japan mulls allowing local banks to buy and sell crypto: reports

Japan's Financial Services Agency (FSA) is reportedly considering groundbreaking regulatory changes that could allow traditional banks to directly buy and sell cryptocurrency, marking a potential paradigm shift for the nation's digital asset landscape. This proposed policy discussion represents a significant step toward mainstream crypto adoption in one of Asia's largest economies.

The move could revolutionize Japan's cryptocurrency market by bridging traditional banking services with blockchain technology, potentially increasing Bitcoin and altcoin accessibility for millions of Japanese consumers. If implemented, banks would gain direct exposure to digital assets, potentially driving substantial trading volume and market liquidity.

This regulatory evolution could position Japan as a global leader in crypto-banking integration, following successful implementations of central bank digital currencies (CBDCs) and DeFi protocols worldwide. The FSA's consideration reflects growing institutional demand for cryptocurrency services and the government's progressive approach to blockchain innovation.

Market analysts anticipate this development could trigger increased institutional investment in Bitcoin, Ethereum, and other major cryptocurrencies, potentially influencing global crypto markets. The upcoming FSA meeting will be closely monitored by cryptocurrency exchanges, financial institutions, and blockchain companies seeking expanded Japanese market opportunities.