After rejecting futures contracts, Japanese authorities explore the possibilities of electronic currency trading funds (ETF)

Less than a month ago, the FSA in Japan rejected plans to trade futures contracts. The Japanese regulatory body is now looking to consider allowing ETFs.

The FSA is considering digital currency trading funds
A person familiar with the matter disclosed that the Japanese Financial Supervisory Authority had abandoned plans to allow the circulation of derivatives based on digital currencies, but could allow ETFs. The Financial Services Agency (FSA) tests the benefit of these funds from the perspective of granting the tool the approval of trade in local markets.

With this step, if the Japanese authorities agree to the ETF, it will do exactly the opposite of what the United States did. In the US, risk regulators have been reluctant to carry out ETFs, but are allowing futures to be traded on their own, which the Japanese authorities have rejected. Japan’s Financial Supervisory Authority explained the decision to reject futures contracts, noting that the introduction of such products would only cause speculation and would be of no use. Permitting futures trading would also make Japan join countries such as the United States, which have already listed Futures futures.

Speaking of the United States’ view of traded currency funds, securities lawyer Jake Chervinsky strongly argued that legislators were unlikely to change their views any time soon. But also that the current government shutdown in Washington could make the Securities and Exchange Commission (SEC) give automatic approval to these funds.

In addition, the Japanese Financial Services Agency (FSA) aims to give more powers to regulators designated by sector entities and their members to oversee the digital currency sector. The Japanese Financial Services Agency is also working to reduce the leverage that can be offered by stock exchanges and brokers. The Financial Services Authority is also looking to subject most of the initial currency support (ICO) operations under the country’s securities law. All these proposals and more the body (FSA) are likely to be incorporated into the bill. The ruling party will present the bill before the end of the current parliamentary session within two months. The proposals are expected to become law by the end of next year.


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