DeutschA move is brewing in Japan that could shake up the global financial world. The country’s financial regulator, the Financial Services Agency (FSA), is reportedly considering a legal amendment that would allow banks to not only trade but also custody cryptocurrencies in the future. Until now, this was strictly prohibited – too risky, too volatile, it was said. But now, the land of strict regulation seems to be heading towards opening up.
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The plan: Banks should be able to treat Bitcoin, Ethereum, and other cryptocurrencies similarly to stocks or government bonds, according to a report by the Japanese newspaper Yomiuri. This would not only make Japan’s financial industry fit for the digital future, but also make it easier for millions of retail investors to access crypto – via the familiar route of a bank account. No more opaque platforms, no more dubious wallets, but regulated institutions with clear rules.
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The message behind it is clear: crypto should no longer be a playground for risk-takers, but a serious part of the financial market. “It’s about making access safer,” reports say. Anyone who wanted to trade Bitcoin so far had to take detours via exchanges, some of which were suspected of not consistently preventing manipulation. In the future, the house bank could become a crypto provider.
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The project has several dimensions. On the one hand, it creates trust when banks officially act as trading partners. On the other hand, it promises new sources of income in a country that has been suffering from zero interest rates for years. Banks, which have so far been unable to generate profits with classic savings products, would suddenly enter a new business area with crypto.
At the same time, the FSA wants to tighten the rules against insider trading. Anyone who uses secret information to gain advantages in the crypto market should be punished much more severely in the future – up to penalties equal to the illegally obtained profits. This is a clear signal: more freedom for the industry, but also more control.
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Politically, the step is flanked by Prime Minister Fumio Ishiba. He has repeatedly described cryptocurrencies and Web3 technologies as an opportunity for Japan. “The development in this area can help solve social and financial problems,” he said last year. However, he remained cautious about whether Bitcoin or other tokens are suitable as a state reserve – he does not want to rush ahead too quickly here.
For international observers, the turnaround is explosive. Japan was long a cautionary tale for regulation after the big crypto crash around the Mt. Gox exchange. Gox. But now the government is turning the wheel in the other direction and signaling: crypto belongs to the financial world. If Tokyo actually changes the law, other markets are likely to follow suit – even in Europe and the USA, people are watching closely.
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The step could have far-reaching consequences. If banks come into play as reliable players, the chances increase that cryptocurrencies will prevail in everyday life – not only as speculation objects, but as a fixed asset class. For investors worldwide, that would be a small revolution. And for Japan, the opportunity to present itself as a pioneer of a new financial order. (mck)
