Japan, known as one of the best-regulated cryptocurrency destinations, may soon pioneer a highly sought after bitcoin ETFs.
According to sources who confided in Bloomberg, the financial regulator is at the moment gauging sector interest in exchange-traded funds tracking cryptocurrencies.
The anonymous sources claimed that the Asian nation’s SEC equivalent has “abandoned plans” to allow crypto-related derivatives, like physically-backed futures (Bakkt), from trading in Japan, but is looking into ETFs instead.
Then, the financial watchdog explained that the decision was based on the fact that introducing such products would only have stoked speculation and little else. Allowing cryptocurrency futures would have seen Japan join countries such as the United States which already have listed futures which track bitcoin.
The U.S. Securities and Exchange Commission (SEC) has long been against approving such a financial vehicle, as the entity believes cryptocurrencies are too nascent (lack of sufficient volume, manipulation concerns, limited surveillance) to support such an offering.
Japan refused to modify its securities laws in other to allow cryptocurrency-based options and futures on major exchanges in the country. After deliberation, The Japanese regulators concluded that approving crypto Futures contracts will do little more than increasing speculation around cryptocurrencies.