The USA and Hong Kong made important decisions by approving spot Bitcoin and Ethereum ETFs in 2024.
While spot ETFs continue to proliferate around the world, Japan, one of the largest economies in the world, still does not have a sports ETF.
While it is noteworthy that no cryptocurrency ETFs have been approved in Japan to date, Japan's financial regulatory authority, the FSA, warns to be careful when deciding whether to approve cryptocurrency-focused ETFs, similar to moves made by Hong Kong and the United States. .
Speaking to Bloomberg, Japan Financial Services Agency (FSA) Chairman Hideki Ito said that “careful consideration” should be made regarding the approval of crypto ETFs.
FSA chief Ito said most Japanese citizens believe cryptocurrencies such as Bitcoin “do not contribute to the wealth creation of the Japanese people in a stable and long-term manner.”
Ito said the FSA wants to maintain a “pro-technology stance,” adding that it has not completely ruled out the possibility of a spot crypto ETF.
“Japanese people do not believe that cryptocurrencies contribute to their wealth.
However, we do not completely rule out the possibility of spot crypto ETF approval. “Still, there are things we need to consider about whether Japanese people should be encouraged to invest in them.”
Japan's cryptocurrency industry has a checkered history. Tokyo-based cryptocurrency exchange Mt. Gox experienced a major hack about 10 years ago, and victims are only now starting to get back the tokens they lost in the hack.
Apart from Mt.Gox, Japanese cryptocurrency exchange DMM also experienced a major Bitcoin hack in June. According to Chainalysis, DMM Bitcoin lost $301 million in the seventh-largest crypto hack on record.
*This is not investment advice.