Japan's Financial Services Agency (FSA) is exploring allowing banking group affiliates to provide cryptocurrency trading services, a market currently dominated by securities group units, Nikkei reported Wednesday.
The regulator is also considering lifting the ban on banks buying and holding crypto as investment assets. Proposed rules would treat cryptocurrencies like bonds and securities, while requiring firms to explain volatility risks to retail investors and maintain financial soundness safeguards, according to the report.
The FSA plans to start formal discussions at a Financial System Council working group meeting on Wednesday. Japan's crypto market has grown rapidly, with active accounts reaching 7.9 million in August, quadrupling over five years, the report said.
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