The Japan Financial Services Agency (FSA) recently took into account the futures and trading of Bitcoin derivatives, but investors have retreated when they decided to block these types of instruments. Considering the fact that Japan is one of the major markets for cryptocurrencies, the decision to renounce this option further separates the sector from institutional investments that could support it. However, it seems that the concept of funds traded on the stock exchange could be on the table, according to "a person who knows the matter" who spoke with Bloomberg.
Bloomberg reports that the Liberal Democratic Party plans to include a bill that could create amendments that make room for ETFs by March of this year. The bill would entail a self-regulatory control for the entire local industry, stating that tokens in ICO are considered securities.
This bill should realistically take up to 2020 to take effect. However, the same report shows that the approval of the trading of cryptographic derivatives on financial exchanges would no longer be approved. If it were, the FSA believes that speculation would be the main problem that attracts attention.
Local regulators in Japan have been increasingly strict about the way the cryptocurrency industry runs after an accident against the Coincheck exchange a year ago. At that time, hackers managed to steal over half a billion dollars in cryptocurrency. However, their interest in cryptographic ETFs would help to introduce new institutional and capital investors in the sector, which not all market observers support.
The launch of a cryptic ETF is already underway for several participants on the US market, although the Securities and Exchange Commission (SEC) is still pondering approvals. In August, the SEC opted for nine Bitcoin ETF applications, which they considered "to prevent fraudulent and manipulative deeds and practices". They even postponed one of the applications, which came from VanEck / SolidX, from a discussion in December to February.
Jay Clayton, the president of the SEC, commented in November that the idea of u200b u200bapproving an encrypted ETF would not even be addressed until the manipulation of the market can not be addressed and eliminated.
A securities attorney, Jake Chervinsky, sided with this notion, commenting,
"It is true that a proposed rule change is self-approved if the SEC does not take a decision by the deadline, but in reality it will never happen." The SEC has sufficient staff to issue a decision, even if it is a a person, is denied for reasons that will be explained later. & # 39; "