According to an anonymous source who told Bloomberg that Japan is all set to launch the world’s first Bitcoin ETF. Although there is no confirmation from the Japenese Financial Service Agency it is likely going to be true because these kinds of rumors don’t come out of nowhere.
The rumor is that they are indeed looking to launch a Bitcoin ETF for the domestic Japenese market. This isn’t a big contrast to what we are seeing in the United States right now. The United States has been quite friendly towards bitcoin futures but bitcoin ETF has been a big struggle for the US to regulate. Japan has done the opposite or seems to be in the process of doing the opposite. They have shot down bitcoin futures attempt but they may be looking to let a bitcoin ETF in. Previously the FSA has said that we don’t like the idea of bitcoin futures but a bitcoin ETF might be something a bit different.
This certainly comes at an interesting time considering the ongoing dysfunction of the United States government continuing the shut down because right now the CFTC and the SEC running on a bare-bones staff which is highly problematic for the organization when it comes to all the different things that they want to be regulated at the moment. The decisions on things like the Bitcoin ETF or Bitcoin Futures etc. are going to be delayed allot.
Bitcoin ETF and Japan’s Bitcoin Market:
Japan always has been and probably always will be a super important market when it comes to bitcoin. We have seen some negative stories coming out of Japan recently like GMM and DMO both shutting down their bitcoin mining operations as they couldn’t find it profitable for running those operations in Japan but overall bitcoin in Japan remains incredibly popular. There is very proactive and positive thinking legislation for bitcoin and other cryptocurrencies in Japan. Also, we had a recent day where Yen surpassed the US dollar in trading volume for bitcoin. A very important thing to keep in mind is that the Tokyo Stock Exchange is the 3rd largest exchange in the world after the New York Stock Exchange and NASDAQ. If the 3rd largest stock exchange could bring up a bitcoin ETF, that could be massive considering how bitcoin crazy Japan is.
The Bitcoin ETF is just one giant thing which could happen. We also have confirmations about other very exciting things happening in Japan right now and how important the Japenese market is for the entire cryptocurrency economy. We do have two stablecoins which are either recently launched or in the process of being brought out. The first one is being launched by Mizuho Financial Group, they announced this in December that they are going to be issuing their own digital currency coming up in March. They are one of the largest financial institutions in the world with 60,000 employees and $1.6 trillion in assets under management. They also work with Japan post bank and sixty other regional banks across Japan.
We also have MUFG, which is the largest financial company in Japan and the world’s fifth-largest bank. They have $2.7 trillion in assets under management. The MUFG coin is again a Japenese Yen Stablecoin.
Japenese Financial Services Agency
The Japenese Financial Services Agency also reporting that currently, they have 190 companies who want to be registered as cryptocurrency operators. Although we don’t know who those 190 are we have had announcements from a few of them saying that they are in the process and working with the FSA to get that authority but we do know that a couple of the big ones are very big indeed. One of them is LINE Corp. LINE Corp is launching a cryptocurrency token called Link. This will be an in-app currency for one of the world’s biggest messaging and video apps. They have hundreds of millions of existing users in East Asia and in fact, it is the biggest messaging app in Japan. When Link gets launched and it does get adopted by the people on the platform it could easily become one of the biggest cryptocurrencies in a very short period of time.
The Japenese Financial Agency has recently released a new draft report outlining new cryptocurrency regulations covering everything from hacking, deemed dealers, privacy coins, margin trading etc. They are very serious about properly regulating the industry and having an open, transparent and clarified set of rules for people to play by.
What do you think about the future of Bitcoin and Bitcoin ETF in Japan? Tell us your thoughts in the comments section below.