According to the source, a public social media post on Oct 19, 2025 claims Japan’s Financial Services Agency may allow banks to custody Bitcoin (BTC) and operate crypto exchanges, but the post provides no official FSA notice or legal reference, so the claim remains unverified at this time (source: public social media post, Oct 19, 2025). For trading, wait for an official FSA release or Cabinet Office Order update before positioning and watch BTCJPY liquidity, Japan exchange spreads, and domestic exchange volumes for confirmation signals if a policy change is announced (source: public social media post, Oct 19, 2025).

According to @rovercrc, Japan is considering new rules that would allow domestic banks to trade and hold Bitcoin BTC, which would represent a material regulatory shift if confirmed by authorities, source: @rovercrc on X. As of 2024, Japanese banks have been restricted from directly dealing in crypto assets under the Banking Act, while crypto-asset exchange services are regulated under the Payment Services Act with oversight by the Financial Services Agency JFSA, source: JFSA public guidance. Any confirmation would typically appear via JFSA rulemaking or related cabinet orders and Diet updates, so traders should wait for official JFSA or Bank of Japan notices before repositioning on BTC-JPY pairs, source: JFSA and Bank of Japan disclosure practices. For operational clues and timelines, monitor official JFSA releases and statements from major banks including MUFG, SMBC, and Mizuho regarding custody or trading frameworks, source: JFSA registries and MUFG investor relations materials.

According to the source, Citi plans to launch a crypto custody service in 2026, signaling continued Wall Street expansion into digital assets, according to the source. The source does not provide details on supported assets, jurisdictions, client segments, or partnerships, limiting immediate trading catalysts and near-term positioning clarity, according to the source.