Japan's Financial Services Agency (FSA) has clarified in a revised Q&A that offering derivatives like CFDs based on overseas crypto asset ETFs is "not ideal" in Japan. The FSA cited the lack of approved crypto ETFs and insufficient investor protection as reasons. These products are linked to spot crypto asset prices and fall under the category of crypto derivatives, which currently lack adequate risk disclosure and regulatory frameworks. As a result, IG Securities has ceased offering CFDs based on U.S. spot Bitcoin ETFs, such as IBIT. This regulatory stance indicates that Japan is unlikely to permit crypto derivatives tied to overseas ETFs in the near future.