In today’s crypto news, Japan’s Financial Services Agency is considering reforms that might permit banks to hold cryptocurrencies such as Bitcoin. Meanwhile, Tornado Cash developer Roman Storm cautions open-source developers about potential retroactive prosecution. Additionally, NFT marketplace OpenSea is transitioning to a multi-asset exchange.
Japan’s FSA considers allowing banks to hold Bitcoin and other cryptocurrencies
The Financial Services Agency (FSA) of Japan is reportedly set to review regulations that could enable banks to acquire and hold cryptocurrencies like Bitcoin for investment.
This shift would signify a significant policy change, as the current supervisory guidelines, updated in 2020, effectively prohibit banks from holding crypto due to associated volatility risks, according to a recent report from Livedoor News.
The FSA is expected to address this reform at an upcoming meeting of the Financial Services Council, which serves as an advisory body to the Prime Minister. The goal is to align crypto asset management with traditional financial products such as stocks and government bonds.
Regulators are likely to explore a framework for managing the risks related to cryptocurrency, including significant price fluctuations that could affect a bank’s financial stability. If endorsed, the FSA may implement capital and risk management requirements prior to allowing banks to hold digital assets.
Roman Storm cautions open-source developers about retroactive prosecution
Tornado Cash developer Roman Storm has warned open-source software developers, especially those involved in decentralized finance (DeFi) protocols, that they could face retroactive prosecution from the United States Department of Justice (DOJ).
In a post on Saturday via X post: “How can you be so certain you won’t be charged by the DOJ as a money service business (MSB) for creating a non-custodial protocol?”
“If the Southern District of New York (SDNY) can prosecute a developer for designing a non-custodial protocol, who is truly safe? My case is still in progress,” he added.
The outcome of the Roman Storm case carries significant legal ramifications for open-source software development in the U.S., establishing a precarious legal precedent for developers who currently lack protection from prosecution.
OpenSea addresses claims of moving away from NFTs, asserts evolution to ‘trade everything’
OpenSea CEO Devin Finzer has dismissed allegations that the company is shifting its focus from non-fungible tokens (NFTs), stating instead that the marketplace is “evolving” into a comprehensive platform for trading all types of on-chain assets.
In a post on X last Friday, Finzer revealed that OpenSea’s trading volume for October exceeded $2.6 billion, with over 90% attributed to token trading, marking the start of the platform’s evolution to “trade everything.”
“We’re creating a universal interface for the entire on-chain economy — tokens, collectibles, culture, both digital and physical,” Finzer informed Cointelegraph. “The mission is clear: anything that exists on-chain should be tradable on OpenSea, effortlessly across any chain while retaining full control of your assets,” he emphasized.
OpenSea, the first major NFT marketplace launched in 2017 to facilitate the buying, selling, and trading of various non-fungible tokens, held its dominant position in the space until early 2023, when it experienced a decline due to the overall NFT market downturn and competition from Blur.
