Japan’s financial regulator is mulling allowing members of banking groups to launch cryptocurrency trading services, in a move to expand market access and foster competition, the Nikkei reported on Wednesday.
Japan’s Financial Services Agency (FSA) is also considering lifting a ban on banks from buying and holding cryptocurrencies for investment.
Banking group subsidiaries are not currently permitted to register with the regulator for crypto asset services under the Banking Act.
The regulator did not immediately respond to a Reuters request for comment.
The FSA aims to revise regulations so that securities subsidiaries of banking groups can provide crypto asset services, a move designed to expand market access and let them compete on equal terms with peers under securities company groups, the report said.
The current space is mostly dominated by affiliates of securities groups such as Rakuten Wallet, an affiliate of Rakuten Securities, and a unit of SBI Holdings .
Given the sharp volatility in cryptocurrencies and the potential for heavy losses, the FSA will mandate that bank-affiliated securities firms provide clear explanations of these risks to retail investors, Nikkei added.
