January 09, 2019 | AtoZ Markets - Japan's Financial Services Agency (FSA) is currently conducting a study on cryptocurrency, amid news of the regulator’s consideration of approving the cryptocurrency exchange-traded funds (ETF).
The stop was said to have provoked some kind of controversy, as it comes not long after the authorities imposed a ban on trading cryptos on the digital asset trading platforms in the country.
Bloomberg recently unveiled that the FSA may soon give the green light to ETFs in Japan, contradicting in that its is previous stance about the digital currency futures and options.
Exchange-traded funds (ETFs) identify as securities used to follow the value of invested assets, and are tradable on exchange platforms.
As they emerged the digital assets’ venue, ETFs are thought of as an added incentive for institutional investors to adopt cryptocurrencies, with the latter’s value prone to increase if the ETFs have been approved.
U.S-Japanese Cryptocurrency Competence
Market observers read approving the ETFs make Japan overtake the United States in the cryptocurrency industry, the thing the country seems to be determined to achieve, especially today as the FSA is seriously considering introducing crypto ETFs.
The news of Japan considering the approval of ETFs comes as February approaches, where the United States is supposed to make a decision on VanEck’s bitcoin ETF (exchange-traded fund) on the 27th, as AtoZ Markets reported earlier.
Financial reports today link both news together, in hints of some kind of competence between the two major countries in the cryptocurrency industry. Even though, the signs showing up until the present time, do not prove high probability of approving the Bitcoin ETF in the states soon. This stays amid volatile news of the regulator studying the bitcoin ETF thoroughly.
“The SEC must examine and re-examine its rules, regulations and guidelines to ensure that they are still working as intended to accomplish the SEC’s mission. This is most recently manifested in areas such as data protection and cybersecurity, as well as the emergence of new investments and technologies such as initial coin offerings and blockchain", pro-crypto SEC commissioner, Republican Elad Roisman, said last July.
In spite of the above said, analysts see that the filing of a VanEck ETF will provide more clarity on the subject.
In a similar context, the U.S SEC had rejected 12 Bitcoin ETFs submitted by the Winklevoss twins and three other companies.
The hope in the cryptocurrency market was up at the beginning of last November, where the U.S financial watchdog was said to be reviewing review 9 Bitcoin ETFs, and up to make a decision on them any moment, as AtoZ Markets reported, giving a margin to “any concerned party being able to file comments with regard to the ETFs and would inform the new portals about its decision.”