Investors in the United States have grown increasingly frustrated with the US Securities and Exchange Commission after repeated delays over decisions on Bitcoin ETFs (exchange-traded funds).
However, the SEC isn’t the only regulator to have shown hesitance on the subject–Japan’s Financial Services Agency is also proceeding with caution over decision-making on its own ETF applications. Comments revealing the regulator’s wariness were made at a meeting upper house of the National Diet on May 30, according to a report by CoinTelegraph Japan.
One Politician Says that if the US Allows an ETF, Japan Must Not Be Left Behind
Interestingly, Japanese politician Takeshi Fujimaki said during the meeting that he expects that the US SEC will eventually approve one of the crypto ETF applications it has received, citing positive and negative comments by ‘Crypto Mom’ Hester Peirce.
Fujimaki continued to say that if the US is going to approve a crypto ETF, Japan should not be left behind. Fujimaki also addressed several issues around the possibility of an ETF, including cybertheft and volatility.
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He said that if an ETF were to be passed, its associated crypto would be kept by custodians and entrusted to banks. He also argued that the introduction of an ETF into crypto markets would facilitate an influx of institutional capital, which would eventually make markets less volatile.
However, Fujimaki’s enthusiasm was met with a harsh dose of realism. An FSA representative at the meeting said that because cryptocurrencies like Bitcoin lack intrinsic value, volatility will remain a big problem. Fujimaki reiterated his point that institutional capital could reduce volatility within the space, but it’s unclear whether the regulator agreed with him.
The comments by the FSA and Fujimaki come just over a week after the Japanese House of Representatives passed new regulations into law in the upper house of the National Diet, according to local news source Nikkei.
The regulations included amendments to two of Japan’s financial laws: the Financial Instruments and Exchange Act and the Payment Services Act. Both of the amendments included measures to add legislation for cryptocurrency margin trading.