- Bloomberg says anonymous sources have hinted that the FSA is now gauging investors interest in ETFs
- Authorities may submit legislation approving Bitcoin ETFs as early as March 2019
- The approval of a cryptocurrency ETF could significantly boost investor confidence in the Japanese cryptospace
After abandoning plans to approve cryptocurrency futures contracts, Japan’s financial watchdog, the Financial Services Agency (FSA) is reportedly looking to support crypto-based ETFs this year, according to a Bloomberg report on January 7, 2018.
Japan’s FSA Set to Approve Bitcoin ETFs
Per sources close to the development, crypto-friendly Japan is on the verge of becoming the first nation to approve a cryptocurrency Exchange Traded Fund (ETF).
The move comes several months after the country’s authorities abandoned plans to greenlight the launch of crypto-based futures contracts.
Regulators had reportedly decided against amending the existing securities law to make it possible for cryptocurrency exchanges to list the products because according to sources, the FSA felt there was insignificant interest in cryptocurrency futures products.
According to Bloomberg, citing an anonymous source, the FSA is now gauging the level of investor interest in ETFs to know whether it would approve the product or not.
Since the wake of the Coincheck cryptocurrency exchange heist that saw over $500 million worth of NEM altcoin disappear from the trading venue, the FSA has been hard at work formulating policies aimed at bringing stability to its cryptospace.
Last year, the FSA made it clear that most ICO projects must comply with its securities law and it also gave the nation’s crypto self-regulatory body, the Join Virtual Currency Exchange Association (JVCEA) more powers to regulate the space.
According to the sources, Japan’s ruling party, the Liberal Democratic Party may submit a bill aimed at further strengthening the nation’s crypto industry by the end of March 2019, and if all goes as planned, there may be significant changes to the Payment Services Act.
Japan Blazing the Trail, 2019 A Significant Year for Cryptos
At a time when the U.S. Securities and Exchange Commission (SEC) has rejected several Bitcoin ETF proposals filed by a significant number of market participants, Japan’s move to approve the product appears a forward-thinking maneuver that could usher in the bulls this year.
As reported by Blockchain Reporter on January 5, 2019, it is expected that blockchain technology will also see significant mainstream adoption this 2019, as more and more established firms are actively integrating the burgeoning technology.