Japanese Financial Services Agency (FSA) is preparing to review relevant regulations, or allow banks to acquire and hold cryptocurrencies such as Bitcoin for investment purposes. This would be a major policy shift, as current regulatory guidelines, revised in 2020, actually prohibit banks from holding cryptocurrencies due to volatility risks. The FSA plans to discuss this reform at a Financial Services Committee meeting, aiming to align the management of crypto assets with traditional financial products such as stocks and government bonds, while also exploring a framework for managing crypto-related risks. If approved, capital and risk management requirements may be proposed before banks are allowed to hold digital assets. In addition, the FSA is also considering allowing bank groups to register as licensed "cryptocurrency exchange operators" to provide trading and custody services. The Japanese crypto market is growing rapidly, and in early September, the FSA sought to transfer crypto regulation from the "Payment Services Act" to the "Financial Instruments and Exchange Act" to enhance investor protection. At the same time, Japan's three largest banks are collaborating to issue stablecoins pegged to the yen, and the Securities and Exchange Surveillance Commission plans to introduce new rules to prohibit and penalize insider trading in cryptocurrencies.