Japan Financial Services Agency: Before approving crypto ETFs, it will be difficult to allow overseas ETF-linked CFDs to be offered domestically.

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BTC3,93%

BlockBeats news, December 9, according to Yahoo News, the Japan Financial Services Agency (FSA) has revised its Q&A to clearly state that offering derivatives such as CFDs (Contracts for Difference) based on overseas crypto asset ETFs as underlying assets in the domestic market is “not ideal.” The reason is that Japan has not yet approved crypto ETFs, and the investor protection environment is insufficient. The FSA pointed out that such products are essentially linked to the spot price of crypto assets and fall under the category of crypto derivatives, with inadequate risk disclosure and regulatory frameworks. As a result, IG Securities has announced it will stop offering CFD trading based on US spot Bitcoin ETFs (such as IBIT). Regulatory direction indicates that in the short term, it will be difficult for Japan to allow crypto derivatives linked to overseas ETFs.

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