The Financial Services Agency (FSA) of Japan plans to allow local trust banks to hold and manage digital assets. Amendments to the law may be introduced in the fall.
Currently, only special custodial and trust companies in Japan are authorized to hold digital assets. However, officials see trends towards an increase in the use of cryptocurrencies and share tokens, which are often tied to securities or real estate. Therefore, the regulator needs to respond.
When the amendments are passed, trust banks will need to prove to the regulator the ability to safely store and manage digital assets. To do this, it will be necessary to pass an audit by the authorities and ensure procedures to combat money laundering and terrorist financing.
Thus, the Japanese bank Mitsubishi UFJ Trust is developing a platform called Progmat, which will allow the issuance and trading of digital assets. That is, tokenize real assets, as well as make payments in stablecoins.
Earlier it was reported that in Japan the process of listing cryptocurrencies on crypto exchanges could be simplified – a special commission led by Prime Minister Fumio Kishida criticized the current system for listing digital assets in the country.