Japan Nixes Bitcoin ETF
Bitcoin ETF or Exchange Traded Fund. In an interview to Bitcoin.com a spokesperson of the Japanese FSA (financial service agency) clarified their position:
"There is no such fact that we are considering approving ETFs which track crypto-assets at present â¦ we are not currently considering approving them"
The agency also clarified its position on cryptocurrency derivative trading:
"Taken it into consideration that it is difficult for us to find constructive and social significance of trading crypto-assets derivatives at present, we think that there is no need for trading crypto-assets derivatives at financial instruments exchanges where many market participants are able to trade."
A U-turn in Policy?
Japanese regulators have tended to take a much warmer approach to the concept of cryptocurrencies than their Chinese & American counterparts. Japan has long been seen as a leader and haven to cryptocurrency enthusiasts. They have legalized cryptocurrencies as a legitimate form of payment in 2017 and are working on regulatory framework for ICOs and token sales as fundraising methods.
Due to their warm approach and the online rumor mill, many believed that a Bitcoin ETF would likely get approved in Japan. The policies of Japanese regulators appear to be changing in today's bear markets.
Over ten ETF's have been rejected by the SEC over the past 6 months or so. Their reasoning was mainly market manipulations and security risks. It seems that Japanese regulators are taking note of their American counterparts and walking in-toe.
Written by Jonathan Ganor
Writer & cryptocurrency aficionado