Japan’s Financial Regulator Abandons Crypto Futures Ideas
According to Bloomberg, Japan’s financial watchdog has abandoned plans to allow listed derivatives based on cryptocurrencies but may yet approve exchange-traded funds that track the asset class, according to a person familiar with the matter.
However, the FSA could still approve crypto exchange-traded-funds (ETFs) that are used to track the prices of digital assets, according to Bloomberg. Sources familiar with the matter also noted that the FSA’s decision to not allow bitcoin futures or ether (ETH) options in one of the world’s largest markets for cryptoassets could be seen as a setback for investors.
Furthermore, during October 2018, FSA proposed the plan of expanding its regulatory extents in Japan. Additionally, the anonymous person (who requested to remain anonymous) told the media that if Japan approves the ETF, it would serve ‘as the key for a bill’ that Liberal Democratic Party will submit by March. Henceforth, the law will come into effect as early as 2020.
Japan’s government is also reportedly planning to make various changes to the existing securities laws, the Payments Services Act, and the Financial Instruments and Exchange Act.