Japan May Let Banks Act as Crypto Exchanges for Retail Investors

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In a move that could dramatically reshape the digital asset landscape, Japan‘s financial watchdog is mulling a reform that would not only allow local banks to trade cryptocurrencies but also to register as official crypto exchanges.

The aim is to create a safer and more familiar gateway for retail investors to enter the crypto market by using their trusted banking institutions.

This potential overhaul of the supervisory guidelines, as reported by the Yomiuri Shimbun, seeks to establish a regulated system where banks can deal in crypto assets with appropriate “guardrails” to manage financial risk. Concurrently, the FSA is reinforcing market integrity by drafting amendments to explicitly prohibit and penalize insider trading.