Japan Assesses Prospects For Launching Crypto ETFs
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The Japanese Financial Services Agency (FSA) has begun assessing investor interest in cryptocurrency traded exchange-traded funds and, if approved, may amend the relevant bill by March Of 2019.
According to the source Bloomberg, despite the fact that Treasury recently refused to approve listed derivatives based on virtual currencies, she can still approve a crypto ETF. Previously banned bitcoin futures and Ethereum options dashed the hopes of investors who expected such instruments will help to attract institutional investors in this area. However, according to the Japanese regulator, derivatives will not bring significant benefits, but only will further increase the level of speculation in the market.
FSA is currently assessing industry interest in ETFs tracking cryptocurrencies and research findings, probably, will form the basis of a future bill, the submission of which is expected before the end of the current session of the Seimas, ending in March. In such a case, amendments to the laws on financial instruments, exchange and payment services may be approved already in 2020 year.
In addition, the Financial Services Agency also plans to introduce clauses on strengthening supervision of the cryptoindustry, reducing the size of the maximum leverage provided by exchanges and brokers, and also allowing ICOs to be placed that comply with the legislation on the Central Bank of the country..
Although exchange-traded funds are not in high demand in the Japanese market, where mutual funds are more preferred, they will help increase the level of confidence in virtual assets in the eyes of many investors and make it easier to work with them. In addition to the country of the rising sun, the approval of a crypto ETF is currently being considered by the regulators of the US and the EU, but so far only Switzerland has launched the first ETP Crypto Basket Index..
text: Ivan Malichenko, photo: hw.mediafed