"Japan Allows Cryptocurrency Sales by Securities Subsidiaries of Banks and Insurers" [Bitcoin Now]

Asahi Shimbun Reports
Sales Prohibited for Banks and Insurance Companies
Amendment Bill to Be Submitted to the National Diet Next Year

Yonhap News Agency

According to a report by the Asahi Shimbun on October 23, Japan’s Financial Services Agency is pushing for regulatory easing to allow securities subsidiaries of banks and insurance companies to sell cryptocurrencies.

The newspaper stated that the Financial Services Agency presented this agenda at a working group meeting under the Financial System Council, a prime ministerial advisory body, held on October 22.

The Financial Services Agency has been reviewing the option of regulating cryptocurrencies as investment assets under the Financial Instruments and Exchange Act.

The agency determined that, due to the extreme price volatility of cryptocurrencies and the risk of losses from cyberattacks, it is necessary to protect depositors and insurance policyholders.

Accordingly, the agency decided to prohibit banks and insurance companies themselves from selling cryptocurrencies, but to allow sales through securities companies. However, as an exception for fairness, sales will be permitted for securities subsidiaries of banks and insurance companies.

The newspaper added, "It is expected that banks and insurance companies will only be allowed to hold and manage cryptocurrencies after strict risk management measures are in place."

The Financial Services Agency plans to finalize the direction of these regulatory revisions by the end of this year and submit related amendments to the ordinary session of the National Diet next year.