Japan Financial Services Agency Studying the Approval of the Cryptocurrency ETF


Bloomberg reported on Monday that although the Financial Services Agency (FSA) had previously refused to list cryptocurrency futures and options on the exchange, cryptocurrency ETF seems to have an opportunity to launch.

In December 2018, the Financial Services Agency opposed the revision of Japan’s securities laws to allow cryptocurrency futures or options to be listed on local financial exchanges because such products “will only contribute to speculation.” However, the report quoted sources as saying that the Financial Services Agency is assessing the industry’s interest in cryptocurrency ETFs.

After investigating the hacking incident of the cryptocurrency exchange CoinCheck, the Financial Services Department published a draft regulatory report at the end of last month to formulate guidelines for regulating the cryptocurrency industry, including giving the self-regulatory organization more regulatory powers and issuing most of the first tokens ( ICO) incorporates securities laws and imposes caps on margin trading margins for cryptocurrency brokers.

According to sources, in the March Congress, the above-mentioned position of the Financial Services Agency may provide support for the ruling Liberal Democratic Party or the submitted draft. The Liberal Democratic Party expects to complete the amendment in 2020, except for the purpose of modifying the securities through the Financial Merchandise Acquisition Act. In addition to supervision, some of the recommendations of the Financial Services Department may also touch on the revision of the Capital Debt Act.

In addition, Japan’s Sankei Shimbun reported that the Financial Services Agency is considering legislation to regulate unregistered companies investing in cryptocurrency. In the current Financial Products Access Law, only unregistered companies are prohibited from investing in legal tender, but there is no express prohibition on unregistered companies investing in cryptocurrencies, so there is a grey area. The report mentioned that in 2018, the Tokyo police arrested eight people involved in a cryptocurrency “Ponzi scheme” which attracted the attention of the regulatory authorities.