Japan mulls letting banking groups offer crypto trading services, Nikkei reports

Group 1 - Japan's Financial Services Agency (FSA) is considering allowing banking group members to launch cryptocurrency trading services to enhance market access and competition [1][2] - The FSA is also contemplating lifting the ban on banks from buying and holding cryptocurrencies for investment purposes [1] - Currently, banking group subsidiaries are not allowed to register for crypto asset services under the Banking Act [1] Group 2 - The FSA aims to revise regulations to enable securities subsidiaries of banking groups to provide crypto asset services, allowing them to compete on equal terms with securities company groups [2] - The current cryptocurrency market is primarily dominated by affiliates of securities groups, such as Rakuten Wallet and a unit of SBI Holdings [2] Group 3 - Due to the high volatility and potential for significant losses in cryptocurrencies, the FSA will require bank-affiliated securities firms to clearly explain these risks to retail investors [3]