Japan is reportedly gathering information about the amount of interest there is among institutional investors for a cryptocurrency ETF which has the potential to lead to the approval of cryptocurrency-based ETFs in Asia’s second-largest economy. Ths according to a report from Irish Tech News, February 18, 2019.
Do Investors Want a bitcoin ETF?
Cryptocurrency exchange-traded funds (ETFs) may acquire a legal status soon if recent reports are to be believed. According to the report, , the Asian country is taking significant steps to provide legal standing for .
The Japanese Financial Services Agency (FSA), the nation’s financial regulator, has revealed that it is investigating how much public interest there is for this type of investment product. According to an unnamed source, it appears the number of institutional investors interested in a cryptocurrency ETF is significant enough to warrant a second look from the FSA.
What Next?
Following the crypto ETF survey, the Japanese FSA, in collaboration with other local authorities, plans to further debate on the fate of such financial instruments.
This follows the shocking where over $500 million was stolen. In response to the theft, Japanese authorities tightened the reins on digital currency-related activity. They rationalized that this was a good way to protect the general public from any unwanted outcomes.
However, only a month after the authorities voted against a law that would allow the launch of a number of derivatives based on cryptocurrencies, it appears the FSA is reconsidering its stance. The proposed law would then be subject to debate within the political apparatus of the East Asia country, prior to confirmation.
If the FSA provides positive feedback to the proposed law, then the would-be piece of legislation will depend on the Japanese Liberal Democratic Party. If the LDP presents a proposal, as is widely rumored, which includes the proposed law, then the suggested ETF legislation could achieve accepted law status as soon as 2020.
The Fate of ETFs
If successfully bestows legal standing on cryptocurrency ETFs, it will be the first among the major global financial powers to do so. In the past year, the SEC has refused to approve a number of proposed bitcoin-based ETFs. The commission is the case of VanEck and SolidX for trading in Chicago. The ruling is set to be revealed before the end of February.
Additionally, if the FSA legalized cryptocurrency ETFs, it is likely to provide an air of legitimacy to the digital currency sector. Following the worrying number of security and legal concerns, a move like this would likely increase confidence and faith in the digital currency industry in Japan.
Published at Tue, 19 Feb 2019 15:00:01 +0000
