Japan may approve the cryptocurrency ETF

The approval of bitcoin ETF in the US-one of the most important cryptocurrency markets in the world – has long been a cherished dream of cryptosphere optimists.

The U.S. securities and exchange Commission (SEC) has long opposed the approval of such a financial instrument because the Agency believes that cryptocurrencies remain too young, a developing asset class (insufficient volume, risk of manipulation, limited supervision) to support it. Accordingly, the Commission has repeatedly postponed the decision on the issue of cryptocurrency ETFs, or even denied the possibility of a positive decision. The SEC even rejected the application of the Winklevoss twin brothers, which indicates the tough position of the Department.

However, if you believe the publication Bloomberg, which refers to its own sources, the Japanese financial services Agency (FSA) may soon approve the application for bitcoin-ETF. Anonymous insiders reported that the Asian equivalent of the SEC "rejected plans" to approve cryptocurrency derivatives such as futures, but is willing to allow ETFs.

The refusal of FSA to approve the turnover of derivatives can be considered as a blow to the industry, especially considering the potential effectiveness of futures for bitcoin and similar instruments. However, there are cynics claiming that the FSA's failure could have a positive impact on the sector, as futures similar to instruments on CME and CBOE actually devalue the value of bitcoin, instead of contributing to its growth.

Insiders claim that now the Japanese Agency is trying to" assess the degree of interest " of the sector to bitcoin-ETF, trying to provide investors with an alternative to the above-mentioned derivatives. According to Bloomberg sources, if the financial services Agency comes to a conclusion about the acceptability of bitcoin-ETF, then by March the liberal democratic party of Japan will submit a relevant bill; thus, the law can enter into force in 2020. This means that the Japanese securities law as well as the law on payment services will be changed.