Financial regulators in Japan are considering acceptance of Bitcoin (BTC) exchange-traded funds (ETF), an anonymous source reported to a reputed news outlet.
Reportedly, Japan’s Financial Services Agency (FSA) is testing interest in an ETF to evaluate issuance of green light for mainstream accommodation.
This green light might come at a time when almost all regulatory authorities are having a hard time to decide their future SOP’s. In the U.S. for example, the putting off of ETF proposals has been the norm for the whole 2018. All proposals were denied stating pending clarity on operations or doubt of market manipulation and abuse.
Even the crypto world is divided over this ETF issue. While some call this the new beginning as ETF approval will mean domestic adoption and overall increase in popularity and asset values by involvement of new institutions, some argue that before domestic adoption, a self-regulation standard should be adopted. This includes exchanges working on the transparency issues and cracking down on spoofing and liquidity bots.
Japan’s go-ahead might be the first one in this regard because SEC is still reviewing the proposals and are not expected to make a solid move anytime in near future. Speculations about the auto-approval (acceptance of ETF if SEC doesn’t make a decision until deadline) might happen are a dud too.
As market analyst Jake Chervinsky puts it, the SEC could reject the proposals through a one-liner.
Not really. It’s true that a proposed rule change is auto-approved if the SEC doesn’t make a decision by the deadline, but in reality it would never happen. The SEC has enough staff to put out a decision, even if it’s a one-pager saying “denied for reasons to be explained later.”
— Jake Chervinsky (@jchervinsky) January 6, 2019
Japan could be taking the lead in ETF approval over U.S. anytime soon.