Japan's Financial Services Agency: Without approval of crypto ETFs, it will be difficult to allow overseas ETFs linked to CFDs in Japan.
TL;DR
Japan's FSA states that allowing overseas crypto ETFs linked to CFDs is 'not ideal' due to investor protection concerns, as Japan does not yet permit domestic crypto ETFs.
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According to Foresight News , citing Yahoo! Japan, the Japanese Financial Services Agency (FSA) has added a new question to its revised "Questions and Answers Regarding the Financial Instruments and Exchange Industry," explicitly stating for the first time that the availability of derivatives based on overseas cryptocurrency ETFs in Japan is "not ideal." Overseas cryptocurrency ETFs are essentially linked to cryptocurrency spot prices, and contracts for difference (CFDs) based on these ETFs may fall under the category of "cryptocurrency or financial index-related derivatives trading" as defined by the Financial Instruments and Exchange Act. Given that Japan does not yet permit the creation and sale of cryptocurrency ETFs, providing such products in a context where investor protection is not yet fully developed raises "concerns regarding investor protection."