The Financial Services Agency of Japan (FSA) is considering the approval of exchange-traded investment funds (ETFs) that track crypto digital assets, reported by Bloomberg. According to the publication’s sources, the financial regulator is currently studying the sector’s interest in cryptocurrency ETFs.
It is worth noting that less than a month ago, the FSA postponed plans to approve cryptocurrency futures. Consequently, the agency has stopped efforts to revise the law on securities, which could lead to a listing of cryptocurrency options and futures on major financial exchanges.
As the FSA explains, this decision was since the introduction of such products would only provoke speculation. By allowing cryptocurrency futures, Japan could join countries that have already approved Bitcoin futures.
In mid-December, the Japanese regulator introduced new cryptocurrency regulation rules, and outlined expectations from the work of the JVCEA association, a self-regulatory organization that received FSA approval last year.
The interest of the country in the approval of new financial instruments is understandable - the excitement around cryptocurrency does not fade but is gaining momentum. In late December, Japan’s financial regulator reported that 190 companies intend to enter the country's cryptocurrency market in the coming months.
The issue of approval of Bitcoin ETF is also very relevant - several countries are discussing the possibility of launching such an exchange-traded investment fund.
The most active discussion took place in the US, where the Securities and Exchange Commission (SEC) rejected several applications for Bitcoin ETF approval last year, and postponed several times to consider a joint application filed by investment firm VanEck and blockchain-company SolidX.
In addition, in mid-December, SEC Commissioner Hester Peirce stated that "Bitcoin ETFs can be approved both tomorrow and after 20 years."
At the same time, the main Swiss stock exchange agreed to launch a cryptocurrency ETP in November last year.