As a seasoned crypto investor with roots deeply entrenched in the dynamic world of digital assets, I find the recent developments in Japan intriguing. Having witnessed the tumultuous rise and fall of Mt. Gox and DMM, I can empathize with the regulatory constraints that Japanese authorities are grappling with. However, I also recognize the potential that cryptocurrencies like Bitcoin and Ethereum hold for long-term investments.
As a researcher, I find myself advocating for a shift in emphasis within our discussions with the Japanese government regarding the approval of exchange-traded funds (ETFs) for cryptocurrencies. Specifically, I am suggesting that we prioritize major tokens like Bitcoin and Ether as the primary focus.
On October 25th, a collection of Japanese businesses submitted a set of proposals titled “Suggestions for Crypto Asset ETF Structures and More in Japan”. The nation is still undecided about whether to approve this financial tool.
According to the group’s suggestion, most voices concur that should Japan permit Crypto Exchange-Traded Funds (ETFs), they would initially focus on Bitcoin and Ethereum. Moreover, they are advocating for a reevaluation of Japan’s tax structure, with a particular emphasis on splitting the tax levied on income.
As an analyst, I find the proposition compelling due to the substantial market worth of these two cryptocurrencies and their consistent performance. This stability makes them appealing for investors seeking to accumulate assets over a mid-to-long term investment horizon.
This group consists of prominent financial entities, which encompass traditional trust banks like Mitsubishi UFJ Trust and Banking Corporation and Sumitomo Mitsui Trust Bank, digital currency exchanges such as bitFlyer Inc., and brokerages such as Nomura Securities and SBI Securities.
In the proposal, the team clearly stated that the perspectives presented within were a collective agreement among group members, rather than personal viewpoints.
On October 23rd, Oki Shiozawa, an investment director at Sumitomo Mitsui Trust Asset Management, expressed that Japanese regulators maintain a careful stance regarding spot Bitcoin Exchange-Traded Funds (ETFs). This is because the Japan Financial Services Agency, the regulatory body responsible for approving financial products, remains traditionally conservative.
The Vice-president of the Japan Cryptoasset Business Association, Keisuke Kimura, shares this viewpoint. He stated that Japan encounters both regulatory hurdles and a negative public opinion towards cryptocurrencies due to past occurrences like Mt. Gox and DMM, which resulted in significant investor losses.
It’s true that while not all Japanese companies are optimistic about cryptocurrencies, some are indeed pushing forward. A prime example is the partnership between Franklin Templeton and SBI Holdings in July, which aims to create innovative products like crypto Exchange-Traded Funds (ETFs). Similarly, Nomura has taken steps to facilitate Bitcoin adoption among institutional investors by launching a Bitcoin investment fund.
Conversely, there’s been a growing trend worldwide towards Crypto Exchange Traded Funds (ETFs). The U.S., for instance, authorized its first Bitcoin spot ETFs in January, with Ethereum ETFs getting the green light in July. Countries in the Asia-Pacific area such as Hong Kong and Australia have also joined the movement by approving their own Bitcoin spot ETFs.
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2024-10-25 14:46