Home News Bitcoin Japanese Regulator FSA May Opt for Crypto ETF

Japanese Regulator FSA May Opt for Crypto ETF

January 07, 2019 13:38
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Source: btcearn
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Japan may explore cryptocurrency Exchange Traded Funds (ETF), instead of cryptocurrency derivatives such as bitcoin futures. The decision to bar Bitcoin or Ethereum futures marked another setback for investors betting on institutional demand to help end a year-long selloff, especially after the security breach that took place at Japanese cryptocurrency exchange, Coincheck, news portal Bloomberg noted.

The news portal further said that this was confirmed by an ‘anonymous’ source who was familiar with the workings of the Financial Services Agency (FSA). Last month, the regulator “decided against pursuing revisions to the nation’s securities law which would have allowed crypto futures and options to be listed on major financial exchanges after concluding that such products would achieve little besides stoke speculation,” the source added.

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The news portal noted that the stance came after months-long investigation into why the regulatory body allowed the hack to take place. Apart from dropping support for derivatives, the FSA also decided to give more power to self-regulatory bodies.

Earlier we had reported Japan’s top financial regulator, Financial Services Agency (FSA) revealing its expectations for the self-regulation of cryptocurrency exchanges in Japan. The FSA had granted the Japan Virtual Currency Exchange Association (Jvcea) self-regulatory organization (SRO) status under the Payment Services Act in October.

The FSA had said, “For this reason, we urge members to join the certified self-regulatory association.” It had also stated that exchanges would need to do more to maintain and strengthen their “maintenance of customer property.”

Apart from that, the regulatory body has also introduced regulations for Initial Coin Offerings (ICO) and had said, “To introduce the regulations, it plans to submit bills to revise the financial instruments and exchange law and the payment services law to next year’s ordinary parliamentary session starting in January.”

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