Japan's Financial Services Agency (FSA) has revised its Q&A to clarify that offering derivatives like CFDs based on overseas crypto asset ETFs is "not ideal" in the domestic market. The FSA highlighted that Japan has not yet approved crypto ETFs, and the investor protection environment is insufficient. These products are linked to the prices of spot crypto assets and fall under the category of crypto derivatives, which lack adequate risk disclosure and regulatory frameworks. As a result, IG Securities has announced the cessation of CFD trading based on U.S. spot Bitcoin ETFs, such as IBIT. The regulatory stance indicates that Japan is unlikely to permit crypto derivatives tied to overseas ETFs in the near term.
Japan's FSA Deems Crypto Derivatives Based on Overseas ETFs 'Not Ideal'
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