Japan Banks to Hold Bitcoin and XRP Under FSA Rules
Japan’s Financial Services Agency (FSA) has proposed guidelines to allow banks to hold crypto assets like Bitcoin and XRP. This bank crypto investment policy will reclassify cryptocurrencies as financial products, cutting tax rates on gains from over 50% to 20%. A government working group is evaluating volatility safeguards and best practices from U.S. and U.K. markets. Chainalysis reports Japan led the Asia-Pacific region in 2025 with a 120% rise in crypto users, adding 12 million new accounts.
If approved, banks will be able to offer direct crypto exposure and exchange services under regulated risk controls. This bank crypto investment push could accelerate institutional participation, boost market liquidity, and strengthen Japan’s leadership in Asia’s digital-asset boom. Traders should monitor FSA updates for potential shifts in market stability and adoption.
Bullish
Allowing banks to hold Bitcoin and XRP under FSA rules is bullish for both assets. In the short term, institutional demand from Japanese banks could drive price spikes as banks acquire tokens to integrate into portfolios and offer client services. Enhanced liquidity and reduced tax rates will lower barriers to entry. Over the long term, reclassification of crypto as financial products and the establishment of robust volatility safeguards are likely to solidify investor confidence and sustain higher capital inflows. Historical precedents show that clearer regulatory frameworks and institutional adoption often lead to extended upward trends in crypto markets. Traders can expect increased trading volumes, narrower spreads, and more stable market conditions as Japan banks ramp up crypto investment.