Japan Integrating Crypto is now changing its bank rules to allow them to hold and trade cryptocurrencies. The Financial Services Agency has proposed a new plan that would allow banks to invest in digital assets something that was previously not permitted.
According to this plan, banks’ securities subsidiaries could also become crypto-asset service providers. This means they could offer their clients the option to buy and sell crypto directly.
The FSA says this step is being taken to make crypto part of a proper financial system, while also protecting investors.
Major Japanese banks such as Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho are among the world’s largest. If these banks enter the crypto market, crypto trading and investment could increase not only in Japan but globally.
But the FSA is still cautious, as crypto prices are highly volatile. Therefore, banks will be required to provide clear warnings to their customers about the possibility of losses in crypto.
If approved, these reforms will be implemented by the end of 2025.
The FSA has announced that its Working Group on Crypto Asset Systems will meet next Friday, November 7, where these discussions will continue.
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Rapid Adoption Drives Change
Japan has always been at the forefront of crypto regulation. It was one of the first major countries to introduce a proper licensing system for crypto exchanges in 2017, ensuring a clear market and protecting investors.
Integrating Crypto usage in Japan has grown significantly these days. By February 2025, more than 12 million accounts had been registered a threefold increase from just five years ago. This makes Japan one of the top countries with the highest number of crypto users.
Blockchain activity has also grown at a similar pace. From July 2024 to June 2025, the total value of crypto in Japan increased by 120%. This shows that Japan is now becoming an important part of the global digital asset world.
On the Flipside – Integrating Crypto
Market participants are already reacting. Bybit has stopped creating new accounts for users in Japan as of today. This step is being taken as the company prepares for Japan’s new, more stringent regulations.
Why This Matters – Integrating Crypto
These changes indicate that Japan is changing its plans it now wants to integrate crypto with the normal banking system, but also wants to maintain a balance between new ideas and safety.
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People Also Ask – Integrating Crypto
What is Japan’s crypto regulatory system?
Japan has clear rules for crypto, overseen by the Financial Services Agency (FSA). Companies that run crypto exchanges must register as “Crypto-Asset Service Providers” (CASPs). They must follow rules to prevent money laundering, online security, and protect people’s money.
Can banks hold or trade crypto in Japan?
Until now, banks cannot hold or trade crypto for their customers. However, with the new plan, banks and their investment branches may be permitted to hold and trade crypto.
How has crypto usage grown in Japan?
By February 2025, more than 12 million people in Japan had created crypto accounts. Blockchain activity has also increased significantly, making Japan one of the countries with the highest crypto usage.
