As per a Bloomberg report on January 7, Japan’s financial regulator, the Financial Services Agency looks forward to approving a Bitcoin ETF(Exchange-Traded Fund).
Bloomberg cites that a person “familiar with the matter,” proclaimed that the FSA is currently ascertaining institutional interest in ETFs that track cryptocurrencies and could give them the green flag.
Japan’s decision to acknowledge a Bitcoin ETF comes during a time when the US regulator- Securities and Exchange Commission (SEC) has denied a number of decisions pertaining to Bitcoin ETF’s.
Bloomberg’s report on the matter comes in the wake of Winklevoss’ brothers Ask Me Anything (AMA) session on social media platform Reddit on Monday. During the AMA, Cameron Winklevoss disclosed that the brothers are “committed as ever to making an ETF a reality.”
The Liberal Democratic Party of Japan will reportedly submit the draft legislation by March 2019. This might include a move through amendments for existing financial rules. The bill would bring in a more self-regulatory oversight to the industry and characterize many ICO tokens as securities.
ETFs, stay as an ultimatum for the traders in the crypto industry who wish that it could provide crypto products more legitimacy in the eyes of investors while making them more accessible for brokers.
However, the U.S and European regulators have shot down many of such proposals while stating about price manipulation or the security of the underlying crypto assets.
After a months-long internal investigation of why it failed to prevent the heists that struck the crypto industry, FSA takes a bolder stance. FSA has decided to give more authority to self-regulatory bodies and put most initial coin offerings under the range of its securities law and cap the leverage which can be offered.
FSA’s commissioner, Toshihide Endo previously stated:
“We have no intention to curb (the crypto industry) excessively. We would like to see it grow under appropriate regulation.”
If Bitcoin ETF gets approved in Japan before the U.S, this may lead to the U.S government to approve a Bitcoin ETF in its local market.
Currently, the time required for the FSA’s decision on the approval of Bitcoin ETFs is quite unpredictable and it may also take many months for the government to come to a conclusion on the subject.