The Financial Services Agency of Japan reported that it is considering the approval of the exchange-traded funds (ETFs) so in this blockchain news we find out more.
The financial watchdog is currently extremely interested in ETFs tracking cryptocurrencies after the agency decided to set aside the plans for crypto futures. The regulator also gave up the idea to revise Japan’s securities law.
The agency explained that the reason for that decision is due to the fact if products such as those are introduced on the market it will only increase speculation on the market.
Besides leaving their plans unresolved, the agency also hopes to cap the leverage that can be provided by exchanges and brokers and also hopes to give more power to the regulatory bodies and members. Some of the proposals that the FSA put forward regarding ICOs is the requirement of the ICO issuers to register with the agency.
Despite the fact that Japan has gone through plenty of the biggest crypto heists in the entire crypto world history, the financial agency is therefore extremely careful and is taking measures that will improve and strengthen the crypto sector.
In August 2018, the Financial Services Agency commissioner Toshihide Endo said that the sector should focus on promoting innovative solutions thus avoiding restrictive policies:
‘’We have no intention to curb [the cryptocurrency sector] excessively. We would like to see it grow under appropriate regulation.’’
The approach has given a step ahead over the rest of the world making Japan the world’s biggest crypto exchange market further than South Korea and the United States.