In the chaos of approving Bitcoin ETF across crypto space by US regulators, Bloomberg reported that Japan’s Financial Services Agency (FSA) is quite optimistic to approve the proposal.
Japan Explores Crypto ETFs
An anonymous person in connection to the matter said that regulators in Japan at the moment are considering to step up with ETF tracking cryptocurrencies instead of future contracts. The FSA’s effort may revive the case of Coincheck hack and many such heist incidents that happened in Japan last year. Henceforth, it would offer more rights and power to country’s self-regulatory bodies and enable them to bring more Initial Coin Offerings (ICOs) under ‘the scope of securities law’.
However a month ago, Japan’s regulators appeared to have revised the nation’s securities law which would let crypto futures and options to ‘be listed on major financial exchanges’ (only after the due diligence of the potentials of these products within the market beside stock speculations).
Saying No To Crypto Futures
In consideration of Bitcoin ETF, Japan is likely to bar the ‘long awaiting bitcoin and Ethereum futures’. On the other hand, US Securities and Exchange Commission has already rejected Bitcoin ETFs including Wrinklovess’s and has delayed many other proposals.
Furthermore, during October 2018, FSA proposed the plan of expanding its regulatory extents in Japan. Additionally, the anonymous person (who requested to remain anonymous) told the media that if Japan approves the ETF, it would serve ‘as the key for a bill’ that Liberal Democratic Party will submit by March. Henceforth, the law will come into effect as early as 2020.
As claimed by the reports earlier, Japan has planned to change securities legislation through the Financial Instruments and Exchange Act and the latest anonymous person reported that FSA’s recommendations are pointing to amend the Payment Service Act as well.
So readers, what do you think about FSA’s decision? Do you think it’s a right move citing the present downtrending crypto market?
Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]coingape.com